Oily Countries Sinking Fast

9 Comments on Oily Countries Sinking Fast

1. Unfortunately, when all the oil-based derivatives and repos and credit default swaps take down the modern financial system the banks and, ultimately, the US dollar we will be well and truly screwed. The Banksters wifi, of course, be made whole by their owned politicians.

2. So, is this why Obama wants to add a 40% tax on oil?

3. OTOH Joe, we didn’t have any trouble with these Desert Irish when oil was $7 a barrel.

4. @Joe, @crazyeighter – In a free market, oil at current low (and dropping) prices would be very good news to almost everybody. Those unhappy about it would be those who had made capital bets on the prices remaining high. They would likely fail, of course, but that’s what the free market is all about: you reward those who correctly forecast things and you punish those who get it wrong.

   But we don’t have a free market, especially in oil. And getting it wrong is to bureaucrats an opportunity. Watch the leeches agitate for bigger budgets, higher head count (heads w/out brains alas), and raise the bombastic catastrophe level in their public pronouncements. Fsck ’em. I’ll take the cheap oil, thankyouverymuch!

5. I brought up oil prices last week at an investment meeting with our Merrill Lynch advisers. Low oil prices are fantastic for the 1st-world economies, enabling growth everywhere except, of course, the energy industry. Stocks take an initial hit because of the energy hit, but long-term it’s much better for the economy.

   Then you have the 3rd-world countries whose economy is largely based upon energy stores. Which means they produce little of value, their primary value being the stuff they let others take out of their ground. Sounds like they need to learn to be a little more productive. I’m sorry for the people who live there, but it’s their leaders who are the problem.

6. The koranimals stepped in it big time.
   All but the economically clueless knew that the China house of cards stand up much longer years ago.
   They picked a bad time to put an end to the shale oil boom. Now they even have Putin crawling up their butts because it is killing his economy.
   Putin is protecting his turf by disrupting oil movement through Turkey. If he has to, he will start taking out oil wells.
   I am glad there is an ocean between us and them, as when the countries start falling there will be hundreds of millions clamoring on the borders of the EU.

7. It’s also destroying the economy of some very good Red States.

8. Trooper;
   it is not destroying their economy, it is upsetting their economy.
   They, for the most part, have broad economies and while oil will go down other sectors will thrive on the low energy costs.
   Watch and see.

9. The “solution” to the low cost of oil is easy. Iran (stand-in for countries who depend on oil income) causes an international crisis. Covertly mind you.

   Perhaps another attack on Israel by Iranian supported terrorists? Reports have said preparation activities have ramped up since Iran is flush again.

   And the world will blame Israel when they fight back.

   That would add $20 per barrel o/n.

   BO paid Iran for more terrorism, and now seems to be an opportune time.

   Or Vlad might move on another ex-SSR.