The Mess That Greenspan Made - Part 32

Oppenheimer & Co. senior oil and gas analyst Fadel Gheit neatly summarizes what’s currently going on in energy markets at about the 1:40 mark below:

I believe there is an agenda here that Saudi Arabia will not allow oil prices to recover until they take care of marginal producers in shale plays in the U.S. … also, to settle their score with the Iranians and Russians.

Of course, it doesn’t help that the price of money has been distorted for so long that it’s become nearly impossible to determine what the price of anything else should be.

Tuesday Morning Links

MUST READS
Oil Plunge Sparks Bankruptcy Concerns – WSJ
Oppenheimer: Half of shale drillers may go bankrupt – CNBC
Billionaire Lasry’s junk fund stops voluntary reporting of asset levels – Reuters
RBS cries ’sell everything’ as deflationary crisis nears – Telegraph
Get Ready to Live the Sequel to “The Big Short” – Wall Street on Parade
German police arrest 211 after far-right riot in Leipzig – Guardian
Anti-refugee right-wingers go on rampage in Leipzig, say police – CNA
Chicago Moves Toward Borrowing $2.65 Billion More in 2016 – Bloomberg
The World’s Most Valuable Substances by Weight – Visual Capitalist
Sen. Rand Paul: The Fed Is Crippling America – Time
Cruz Camp Tests Lines of Attack on Trump – RCP
Clinton, Sanders try to spice up their duel – Politico

MARKETS/INVESTING
Dow looks to extend winning streak to two – USA Today
Oil steadies below $32 as investors book profits – Reuters
Bearish J.P Morgan says sell stocks on any rally – MarketWatch
Canadian Stocks Fall in Longest Slump Since 2002 as Oil Slides – Bloomberg
Rosenberg: We’re entering a period of ‘irrational pessimism’ – National Post
Goldman Sachs Sees $64B in Buybacks Rescuing Japan Stocks – Bloomberg
Stocks still aren’t even close to being cheap – MarketWatch
Gold steadies as stocks, dollar edge higher – Reuters
How Gold Got Its Groove Back – U.S. Global Investors
Gold charts offer solace with markets gripped by fear – Mining.com

ECONOMY/WORLD/HOUSING/BANKING
The Big but Hidden U.S. Jobs Problem – WSJ
Three Ways to Help the Working Class – Fiscal Times
Austrian Economics Is More than Free-Market Economics – Mises
Is the Market Swoon Signaling Recession? – Investors.com
Growth of Automobile Sales in China Slows Further – WSJ
Putin Says Sheltering Assad Would Be Easier Than Snowden Asylum – Bloomberg
FICO Scores On Mortgage Loans Continue To Decline – Confounded Interest
Fed’s Kaplan says four rate hikes not a sure thing in 2016 – Reuters
Central Bankers Enjoy Twitter Party as Followers Jump by Half – Bloomberg
An Open Letter to the Banks – Zero Hedge

 

The Rise (and Fall?) of the Chinese Economy

Tyler Cowen of Marginal Revolution fame (a blog that has been around a very long time by one of the few TMTGM-approved economists in the world) takes a look at how the current China came to be and what recent troubles in the Middle Kingdom portend for the future.

The period ahead will surely test China’s “command and control” economy and financial system. So far, they seem to have mucked things up a bit by stoking the 2014-2015 stock market bubble and then ham-handedly propping it up, but, they’re learning.

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Monday Morning Links

MUST READS
China stocks start new week with 5.3% drop – CNN/Money
Asian stock markets’ horrible start to 2016 is getting worse – Quartz
The Consequences of China’s Stock Slide for Top Leaders in Beijing – WSJ
Market Bubbles: What Goes Up Doesn’t Always Come Down – NBER
Are we  on the cusp of another stock market and property bubble – Daily Mail
Why Minsky Matters: An Introduction to the Work of a Maverick Economist – THE
Complex Systems, Feedback Loops, and the Bubble-Crash Cycle – Hussman Funds
ABC severs debate partnership with Union Leader – Politico
Angry Voters: They’re ‘Sick of Politics’ – Real Clear Politics
For GOP ‘Field of Dreams,’ is Iowa heaven? – The Hill
David Bowie, master of reinvention, is dead at 69 – CNN
How to Build a House on Mars – The Atlantic

MARKETS/INVESTING
U.S. stocks hope to stabilize after dismal start to year – USA Today
China’s yuan spikes higher, but stocks tumble – Reuters
Stock Gains Short-Lived as Chinese Volatility Hurts Oil, Metals – Bloomberg
The Stock Market Is Plunging — Here Are 3 Questions You Should Ask – Motley Fool
Global Stock Markets Off to Worst Start in History – Visual Capitalist
Hedge Fund King Ray Dalio’s All Weather Fund Down 7% In 2015 – Forbes
Oil Seen Heading to $20 by Morgan Stanley on Dollar Strength – Bloomberg
Gold down, but stocks turmoil keeps it close to 9-week highs – Reuters
Top Chinese bank buys 1,500 tonne London gold vault – Mining.com
Gold in 2016 – GoldSilverWorlds

ECONOMY/WORLD/HOUSING/BANKING
The Next Recession? – RCP
Where’s the inflation, Mr Shin? – BIS
The Rise and Fall of Growth – Economic Principals
The TPP as a set of international economic rules – voxeu
The Chinese Economy’s Great Wall – Project Syndicate
Why household debt makes economies prone to crises of confidence – voxeu
The US Trolled Kim Jong-un by Flying a B-52 Bomber Over South Korea – Vice News
China Rout Threatens to Spawn India Crisis, Top Banker Says – Bloomberg
Why the Fed needs to prepare for the worst right now – Washington Post
So much for QE (guest post) – Noahpinion

 

John Oliver on New Years Resolutions

Still on hiatus (and not returning until next month?!), HBO’s John Oliver details how we should modify our New Years resolutions in order to increase the possibility of succeeding (either that, or being better able to rationalize why we’ve again failed).

Don’t know about you, but I’ve not made any New Years resolutions in years…

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