I recognize this is legitimately about banks, and this is not an attempt to hijack it. I only add this because it’s all so interconnected and interdependent. Big oil is similarly on the brink. While I do NOT recommend being conned into many of the offerings on Casey Research now that Porter Stansberry is in control of the company, I do recognize that they still put out at least some good information (usually as a teaser to get the reader to buy into something of Stansberry’s). Here’s what just came out yesterday:
The Wall Street Journal reported last week that the global economy is oversupplied by about 1.5 million barrels a day.
• Giant oil companies are struggling to make money…
. . .
British oil giant BP (BP), … Exxon Mobil (XOM), … Chevron (CVX), … Royal Dutch Shell (RDS.A), [and] Total SA (TOT), Europe’s second largest oil company, … are known as the “supermajors.” On average, their stock prices have plunged 30% since June 2014.
• The oil industry is in “survival mode”…
Oil companies have laid off more than 250,000 workers since the downturn began. Worldwide, they’ve cut spending by more than $100 billion in the last year alone.
Oil companies have sold assets… slashed exploration budgets… and abandoned billion-dollar projects.
• But until recently, big oil companies have not cut dividend payments…
. . .
• ConocoPhillips (COP) cut its dividend by 66% last week…
Conoco is the third largest U.S. oil company. It announced horrible results last week. Fourth-quarter sales plummeted 43% from the prior year, and it booked a net loss of $3.5 billion.
And as I type this, oil is now under $28 (after briefly jumping over $33 the other day), and the $US is only at 95.94, after having finally hit 100 just a couple of weeks ago or so. Plus, gold just spiked from $1078 less than a month ago, topping $1200 yesterday, and holding just below that today. It started yesterday around $1165, climbing steadily from there to $1200 by 2:00 p.m. A 3% gain in only hours? And an 11% gain in under a month? Banks? Oil? Gold? And other significant indicators you won’t hear about on the nightly “news” because the only thing that matters is what the polls say about the candidates. But it all seems to be like pieces of a complicated puzzle, all laid out on a large table, and suddenly they’re all moving toward the center of the table and taking shape, even interlocking appropriately to form the eventual picture.
We still have a U.S. presidential election to go yet, and IF that’s allowed to go as planned, I suspect the PTT (Plunge Protection Team) will be allowed to continue doing its job to maintain the illusion of sanity in the marketplace, low unemployment, … and calm. After November (and particularly during the truly lame duck period from then until 20 January 2017), all bets are off. I suspect there will be no emergency declaration or other catastrophic decision by FedGov. Instead, I would not be surprised if they finally allow things to crash and burn, sit back playing their fiddles, while some Republican candidate gets sworn into office with an unfixable disaster on his hands. And if it’s Hillary, and she’s indicted, Obama will pardon her on 19 January 2017, and allow her to implement all the things the people will be screaming for, thereby ushering in the scenario recommended by Cloward and his lovely bride, Frances Fox Piven.
These be dangerous times, don’tchaknow! But all is well – Beyonce got to bring out her Black Panther, anti-cop, pro-Black Lives Matter routine in front of the entire world Sunday, Lady Gaga was the “best” person to sing the national anthem, so all must be well.