The Mess That Greenspan Made - Part 30

Unrelenting Oil Supply

They say a picture’s worth a thousand words and that axiom is demonstrated nicely by the blue bars in the chart below from this iMFdirect story about global oil supply.

As recently as 2014, OPEC nations seemed happy to reduce oil supply to support prices and, of course, back during the financial crisis, output was slashed before, during, and after the oil price bottomed out, but things are quite different now.

Tagged with:  

Thursday Morning Links

Epic oil glut gets worse – CNN/Money
Oil Prices and the Global Economy: It’s Complicated – iMFdirect
The Post-Crisis ‘Fed Effect’ for Stocks is Fading – Bloomberg
China’s biggest broker spent more bailing out stock market than it earned – Quartz
Decade of Growth Poised to End for China Banks Stung by Bad Debt – Bloomberg
Exorbitant privilege and the cost of renting America’s balance sheet – FT Alphaville
Michael Hudson on the Rentier Economy, and the Coming Financial Cold War – NC
Trump and Clinton viewed unfavorably by majority – CBS/NYT poll – CBS News
How Trump could be denied the nomination even with a majority – Vox
This is why Trump’s winning, and why I won’t vote for Hillary – Salon
Shadow campaign to deny Trump his delegates begins – Politico
Sanders should definitely not drop out – The Hill

U.S. stock futures lower, Asian markets fall – USA Today
5 Reasons Why Stocks Look Ready To Tumble – Barron’s
Commodity bulls twisting in the wind –
It’s Hard Being A Bear – Alhambra Investment Partners
Dollar rise hits commodities as Fed talks of tightening – Reuters
Why Oil Prices Are About To Plunge Again: Floating Storage To Come On Shore – Zero Hedge
‘Rich Dad’ author says 2016 market collapse he foresaw in 2002 is coming – MarketWatch
Pound’s $16 Billion of Option Trades Envisage Drop to 1980s Lows – Bloomberg
Gold on track for biggest weekly loss in more than four months – Reuters
Venezuela’s Woes Weighing on Gold – Dennis Gartman – Kitco

What Killed the Middle Class? – of two minds
The hidden victims of the Global Crisis – voxeu
Economics in a Time of Political Instability – Project Syndicate
Europe is now drowning under the cost of welfare bills – Telegraph
The Mystery of Bangladesh’s Missing Millions – The Atlantic
Europe’s Underbelly: Brussels Is the Ultimate Soft Target – Spiegel
British Man Arrested After Asking a Muslim Woman to ‘Explain Brussels’ – Vice News
Making $250K a Year in Palo Alto Qualifies for Housing Subsidies – Liberty Blitzkrieg
3 Long-Term Consequences of Negative Rates – Bloomberg
The Fed’s Misunderstood Dots – Bloomberg


CNBC reports that the Janet Yellen Fed has a “mini-revolt” brewing with a total of four Open Market Committee members favoring a more hawkish approach to monetary policy.

Of course, financial markets will have the last say on whether short-term interest rates are raised from their current freakishly low levels and, if so, how fast.

Markets seem to be giving the Fed the go-ahead at the moment, but, as we’ve seen over the last year or so, that could change rather quickly.

Wednesday Morning Links

Central banks are already doing the unthinkable – Telegraph
Helicopter Money Takes Flight as Latest Drastic Monetary Idea – Bloomberg
BofA Explains Why The ECB Will Be Forced To Buy Junk Bonds – Zero Hedge
Surviving Suspect in Brussels Airport Attack Has Reportedly Been Arrested – Vice News
When it comes to terror, isn’t it time we started listening seriously to Trump? – Daily Mail
Trump vs. Clinton—Who Has the ‘Steady Hands’ to Manage the Mideast? – Fiscal Times
Who Would Be Better Fighting Terror: Trump or Clinton? – Washington’s Blog
Bernie Sanders explains why low-income Americans vote Republican – The Week
Why American elections ranked worst among Western democracies – Quartz
Rubio’s Failure: How Our Broken Economy Fuels Voter Rage – Mises
Here’s How You Know 2016 Is Already Decided – Politico
Gold, The Federal Reserve and the Candidates – Townhall
Contested conventions, explained – Vox

Stocks: 4 things to know before the open – CNN/Money
Oil prices storm back to recover 50pc in two months – Telegraph
Another Bubble… On The Verge of Popping – Eric Peters Autos
Companies haven’t fudged their numbers this much since the financial crisis – Yahoo!
Americans Think the Stock Market Will Soar Under President Trump – Fortune
You can easily mimic a hedge fund’s performance — without the blowups – MarketWatch
Spot gold hits one-week low on dollar, U.S. rate hike comments – Reuters
Mixed Economic Data Supports Gold and Short-Term Munis – US Funds
Venezuela Exported Another 12t of Gold to Switzerland in February – BullionStar

Home Is Where the Inflation Is – Bloomberg
$15 minimum wage to be on California ballot – CNN/Money
Causes of the Eurozone Crisis: A nuanced view – voxeu
China’s challenges: A bumpy road ahead – BBC
Puerto Rico Gets Mixed Reception at U.S. Supreme Court – Bloomberg
Toronto, Vancouver housing markets charging ahead – Daily Commercial News
Study: Millennials really want homes, but are waiting … for now – USA Today
As Fed eyes two rate hikes, dovish Evans is no longer fringe – Reuters
Yellen, Draghi, Kuroda: Deranged lab rates – The Burning Platform
The Fed’s Credibility Dilemma – Bloomberg


Got the Wütburger?

The current issue of Spiegel with the cover below will no doubt be a big seller on newstands in the days ahead after next-door-neighbor Belgium was the victim of another terrorist attack (Spiegel cover story is here, news reports on bombings are here and here).

As best I can figure, this translates to “Got the Wütburger: You lied up there to all of us”.

Clearly, they’re angry in Germany too as, according to this story, one of the country’s new words this year is “Wutburger”, loosely translated as “enraged voter”, a term that is no doubt a reference to Chancellor Angela Merkel’s handling of the refugee crisis.

© 2010-2011 The Mess That Greenspan Made