Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
And what suggestion do you have that hasn't been tried in such hellholes as the former Soviet Union, China, or Greece?
Perhaps a 320 million people version of modern Germany without the historical shame that cripples them into accepting assimilation-averse immigrants, who conspire against and drown her in liability, into their otherwise homogenic cultural infrastructure. Much better visions for education, healthcare and labor training and work rules than we do. Much stronger and tighter lending controls at the corporate level, remove their grubby hands from the cookie jar.
Not a perfect solution, but it beats the road to fascism we're on. I don't want this lesson to become self-evident when American streets look like mainstreet Caracas or Rio de Janeiro, straight out of a scene from the movie "Elyssium". The high socioeconomic polarity of Second World (i.e. third world socioeconomic dynamics on a first world infrastructure) is dystopian and overrated.
But we're not going to do anything. We're a Country of Pearl Harbors. We watch the cities burn until it's inescapable and a watershed incident rocks us, then we enact sweeping social changes that shock the population into change. Meanwhile entire generations go eating crow in the intermediate socioeconomic paralysis. It's a cruel way to enact change and progress, but it's what happens when you are controlled by people who don't really represent your interests. Much of Rome was ruled in such ways, and we know how that fizzled and cracked. I'll take Germany with higher native birth rates for $200, alex......
That is pretty funny. The author of your website implies all this expertise and knowledge of markets, so does he spend his time actually making money in the markets using his deep insight?
Why no, he spends his time peddling investment newsletters to people who eat up his never ending tale of impending doom.
Now, would it have been a great idea to force all banks to mark loans to market at $26 per barrel, when we've already recovered to about $40? Even if we don't hold $40, the likely point where markets settle will be above $26. Right now, at $40 per barrel, oil is about where it was in 1977 in real terms. Using $2.05 as an average price for gasoline (in my area) the real price in 1977 dollars would be $0.52 and in 1972 dollars $0.36. The actual averages in my area weren't that different; about $0.57 in 1977 and $0.38 in 1972.
So while I don't like hiding real facts we don't have to go overboard and create a crisis either.
It started in January..oil companies defaulting. Up over 2000% from 2014.
JP Morgan set aside $125 million to cover bad loans.
One company, Swift Energy, has over $1 billion in debt that they cannot pay.
Samson Resources has over $1 billion in loans due this year that it said it cannot pay.
Yeah..the writing has been on the wall since last year.
Banks changed their oil projections near 10 times last year in hopes that oil would rebound.
Now, would it have been a great idea to force all banks to mark loans to market at $26 per barrel, when we've already recovered to about $40? Even if we don't hold $40, the likely point where markets settle will be above $26. Right now, at $40 per barrel, oil is about where it was in 1977 in real terms. Using $2.05 as an average price for gasoline (in my area) the real price in 1977 dollars would be $0.52 and in 1972 dollars $0.36. The actual averages in my area weren't that different; about $0.57 in 1977 and $0.38 in 1972.
So while I don't like hiding real facts we don't have to go overboard and create a crisis either.
But these loans were based on oil price projections and those projections were at the high level.
Changing projections won't get those loans paid.
But these loans were based on oil price projections and those projections were at the high level.
Changing projections won't get those loans paid.
There's a huge difference in writeoff amounts at $40 as opposed to $26 a barrel. Remember oil first pierced $50, I believe, in 2005.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.