25 year depression coming soon

[YALE]

makes one wonder, no?

It's the economic equivalent to his separate generator under the hood idea. You know, for mileage.

[Broncojohnny]

Unless you subscribe to Paul Krugman's bullshit that the debt will never ever have to be paid back or reckoned with, then you realize that the guy has a point. The only alternative is massive inflation.

As soon as people decide our debt is shit, this party is over. The stuff since the financial shitstorm in 2008 has just accelerated the timeline. What is up for debate is how it will all play out and the amount of drama involved.

[YALE]

Unless you subscribe to Paul Krugman's bullshit that the debt will never ever have to be paid back or reckoned with, then you realize that the guy has a point. The only alternative is massive inflation.

As soon as people decide our debt is shit, this party is over. The stuff since the financial shitstorm in 2008 has just accelerated the timeline. What is up for debate is how it will all play out and the amount of drama involved.

It's gonna be a fun ride, when interest rates start going up.

[Broncojohnny]

It's gonna be a fun ride, when interest rates start going up.

If you read the comments from some of the Fed regional heads, they are supposedly going to raise rates once and then see how the markets react. Last time they starting raising rates, they did it 17 straight times. They can't do that this time.

What I have to laugh at is the eternal stock market pumpers. The Jim Cramer types of the world who insist that everything is a buy signal. Right now they are touting the drop in oil prices as a huge positive for the economy while simultaneously saying the Fed should delay raising rates because of it. Hilarious.

[32vfromhell]

Consumers are better spenders that reinvest gas price savings quickly back into the economy much faster than O&G companies though Al.

[Denny]

Unless you subscribe to Paul Krugman's bullshit that the debt will never ever have to be paid back or reckoned with, then you realize that the guy has a point. The only alternative is massive inflation.

As soon as people decide our debt is shit, this party is over. The stuff since the financial shitstorm in 2008 has just accelerated the timeline. What is up for debate is how it will all play out and the amount of drama involved.

What about when the Fed is pumping the currency into the economy AND the markets still show deflationary characteristics?

[YALE]

If you read the comments from some of the Fed regional heads, they are supposedly going to raise rates once and then see how the markets react. Last time they starting raising rates, they did it 17 straight times. They can't do that this time.

What I have to laugh at is the eternal stock market pumpers. The Jim Cramer types of the world who insist that everything is a buy signal. Right now they are touting the drop in oil prices as a huge positive for the economy while simultaneously saying the Fed should delay raising rates because of it. Hilarious.

Yeah. Don't pay attention to the big banks having cash reserves in the trillions because they were essentially forced to take. That isn't important. Do pay attention to an over-hyped index.

What about when the Fed is pumping the currency into the economy AND the markets still show deflationary characteristics?

Stagflation, mayne.

[Denny]

Egg Zachary

[Broncojohnny]

Consumers are better spenders that reinvest gas price savings quickly back into the economy much faster than O&G companies though Al.

The consumer has a finite amount of money and generally if it isn't spent on gas then it is spent at Wal-mart or Target or some other place. We don't need more consumer spending at Wal-mart or Target. We need the capital spending that results from gasoline sales to provide jobs. O&G has been providing jobs for years using those dollars to extract natural resources which is an incredibly accretive activity. It creates value from thin air. Taking that money away and spending it at Wal-mart is not a positive thing in my opinion.

[Denny]

The consumer has a finite amount of money and generally if it isn't spent on gas then it is spent at Wal-mart or Target or some other place. We don't need more consumer spending at Wal-mart or Target. We need capital spending that provides jobs. O&G has been providing jobs for years using those dollars to extract natural resources which is an incredibly accretive activity. It creates value from thin air. Taking that money away and spending it at Wal-mart is not a positive thing in my opinion.

Right. It's just funding the Chinese manufacturers that stock Wally World, ultimately.

[jw33]

[YALE]

Oil & Gas companies are further ahead of the curve than people realize in regard to alternative energy. They're just going to make their money where it's easiest first. They have accountants. Presuming they won't ever use oil money to fund alternative energy development is stupid.

[Denny]

Oil & Gas companies are further ahead of the curve than people realize in regard to alternative energy. They're just going to make their money where it's easiest first. They have accountants. Presuming they won't ever use oil money to fund alternative energy development is stupid.

They knew where today's money was going, just like they know where tomorrow's money is headed. They have the R&D and initial trials well under way.

[Broncojohnny]

Rex Tillerson came out and said Exxon is ok with $40 oil. I am sure that is because they have a fortress balance sheet and look forward to buying a lot of companies what are going to be in deep shit at that price.

[Denny]

Rex Tillerson came out and said Exxon is ok with $40 oil. I am sure that is because they have a fortress balance sheet and look forward to buying a lot of companies what are going to be in deep shit at that price.

I heard ~$60 is the breaking point for a lot of smaller outfits. If that's true, that's a hell of a gap from $40. I do know that Halliburton has still been hiring like crazy.