Ultimately counterproductive . Shale producers going into bankruptcy just means that those assets will transfer from weaker financial hands into stronger financial hands. And when the period of consolidation is over — the cure for low commodity prices is lower commodity prices— Saudi Arabia still has the same problem they started out with.
Right. They tried this before and all that ends up happening is bankruptcies followed by stronger companies buying up the assets. I drove through Hobbs a few weeks ago and there were several new hotels and restaurants going up. Some banks are going to take it in the shorts as are apartment and home builders.