Posted on 12/09/2015 10:02:37 PM PST by PAR35
... It's fueling financial turmoil on Wall Street with Standard & Poor's Ratings Service recently warning that a stunning 50% of energy junk bonds are "distressed," meaning they are at risk of default.
Overall, about $180 billion of debt is distressed. It's the highest level since the end of the Great Recession and much of it is in energy companies. ...
Not a repeat of 2008...
(Excerpt) Read more at money.cnn.com ...
Copper, aluminum and steel collapse to crisis levels http://money.cnn.com/2015/12/09/investing/oil-prices-metals-crash-crisis-levels/index.html
At least the economy is booming.
They advertise on talk radio: tax advantages, proven reserves, ...
And unemployment is only 5%.
Prosperity is just around the corner. /s
Went to that link about commodities. The comments sections is so filled with stupidity it’s scary.
Unless you’re wealthy and invested, lower commodity prices are good. Very few in the USA now advance because of higher prices in this stuff. The cheaper the better, for all of it.
How will aluminum smelting businesses do in such an environment?
A fraction of the workforce will suffer, but the massive numbers of the former middle class will benefit from lower prices. That is *if* the cost reductions get passed down, which doesn’t always happen.
The markets have known this for a while now and it is baked into the cake.
Going to be some great buys at steep discounts coming.
It’s not called “junk” for nothing.
Prices could go down, wages could go down. One thing that won’t go down is mortgages, car payments, anything purchased on credit. Debtors lose during deflation.
No, the widespread lower prices indicate that there isn’t much manufacturing going on, which means real (as opposed to official) unemployment is going up. For those of us who actually do make money in a recession, things are looking up.
Yep. Up until about a year ago. The half decade before that was pretty slow.
Trying to decide now whether to try to target the oil patch or ag.
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