What's going on in the markets lately. The stock markets and exchange rates have taken a severe tumble, the price of oil is down to $55 a barrel and all the banks and bonds are topsy turvy. Admittedly, in the UK the major players have been stupidly hyping up the markets and now been found out but this plunge isn't unique to the UK. Apart from the OPEC issues there doesn't seem one particular reason for this falling market and general instability once again.

Does anyone your side of the pond have anything of news interest to share?

 

Nope market sucks here too, losing a lot on my oil stock with crude so low, seems like people are spending for Xmas so ......

 

This is what happens when you tie your economy to oil.

The ruble is in the ****ter in a big, big way because their economy was so intrinsically tied to oil.



This not only sucks for Mother Russia, but also for the international banks that have loaned money to Russia and vice versa. Never mind that there are more than a few economies that are tied to Russia's prosperity or peril.

If Russia's economy goes full on collapse, the effects are going to be felt in markets far and wide.

 

Pork bellies!!!! That's where it's at. Oil is just another fluffed up hype.
Get with it, guys.

 

I read an interesting article a number of weeks back when oil started its fall. One of the theories proffered was collusion between the Saudi's and the US in an attempt to really whip the Russian economy. Between the collapse of oil and the economic sanctions, Russia is facing a liquidity issue that could have a greater impact than any military could exert. Is this what it will take to force the Russian out of Crimean and the Ukraine?

The theory pointed to the effect the collapse of oil had on the Soviet Union in the late 1980's. Essentially, collusion between the US and the major Arab producers crushed an already teetering Soviet economy dramatically limiting its influence as the Eastern Bloc crumbled. It even had a beneficial effect on the Iran Iraq War bringing it to a close as well.

There are those that say that even the Iraqi invasion of Kuwait was in response to over production and oil theft on the part of the Kuwaiti's. The US wanted over production of oil after that war to further cripple Hussein since the war left him stronger than the experts had expected. He was carrying an enormous debt thanks to the almost ten years of combat with Iran. He begged the Saudis, Kuwaiti's, ect. and they turned their back on him. He needed money and higher prices for his oil. The resounding no from the top OPEC producers was a prime motivator for his invasion.

 

Totally agree. Why else would OPEC do this now ?? They wouldn't bite the hand that feeds and protects them. Unless there was a cause/effect reason created by the US govt. Seems to be working. Except the world is suffering.

Side Note. I forgot who said they were losing money on oil stocks, If you don't sell oil stocks now you won't lose money. Dividends (If exist) are a bit lower but that will be made up later. Buy some more if you feel like the risk. Low prices won't be around long. Buy low sell high and Diversify.

Another side note: Seems our great and wonderful millionaire senator from KY. Must have inside info on when OPEC will shut off the spigot. He still want to build the Keystone Pipeline. Why?? sounds like a losing proposition unless he will make money whether "IT" does or not. Or he knows when the end of low oils prices are. " Probably as soon as Russia economy collapses"
I really like the idea of no oil dependency, Even on Canada So why do we ship it out of the country? We all know the answer to that. Or do we really
Paul makes a good point.
The American public have no say in governing this country. Either politicians think we are stupid or they don't care. They probably don't care since we can't do anything about it.
End Rant

 

I actually thought me driving a Rover was driving oil prices up.
We can live without oil Every body needs bacon

 

yep...I have been doing some work on my d2, now that I've been back on the road for a few, things should level out.

 

I actually think the debate on the XL pipeline is moot for the time being. There's no reason for its existence. I question the need for it even when shale oil is flowing. I'm fearful of the effect a spill might have right over the largest aquifer in the US. These spills are VERY different that what we are accustomed to.

As far as energy independence is concerned, this is a phrase that has absolutely no real meaning in a world economy. Oil extracted in the US enters the world market as soon as it is extracted from the ground, in fact as soon as contracts for its extraction are signed. This concept of "energy independence" is something that's supposed to give us the warm and cozies. It can't and won't happen because any attempt at holding production back purely for ourselves would start an international trade war. You can't be part of the global economy only when you feel like it.

If you want a government that answers to the voters then I'm afraid you're going to have to get more than 37% of them to turn out for an election. You're also going to have to demand reform in the way campaigns are financed. Look at the BS that will not be allowed so the stimulus could be passed. Millionaires have had the cap removed in the levels of their donations to the political parties and to PACs.

I am a member of wolfpac (Wolf PAC). We're doing everything we can to overturn the Supreme Courts decision in Citizen's United and take back the way in which our representatives get elected. A constitutional convention was a marvelous invention of our founding fathers and it would appear it's the only path left for us to recapture our democracy.

 

"The American public have no say in governing this country. Either politicians think we are stupid or they don't care. They probably don't care since we can't do anything about it."

The American public COULD have a great say in governing this country but when about two thirds of them stay home on election day, why should politicians be concerned?

Instead, politicians seem hellbent on restricting the rights of many in an effort to make sure even fewer people vote. It's disgraceful.

We have to realize that elections, from the President, right on down to the dog catcher, MATTER. Unless we get off the LazyBoy, educate ourselves about the issues (locally, statewide, nationally AND internationally) and VOTE, we have no one to blame but ourselves. I know people are busy and have a ton of other excuses for why they haven't voted. Some even have the audacity to actively turn their back on a democratic process their parents or grandparents willingly offered up their lives for. People like that should be ashamed. I always say, if you didn't vote that STFU, you forfeited your right to complain when you forfeited your vote.

It makes me sick to my stomach that people can easily rattle off the starting lineup of their favorite ball team or what's going on with Dancing with the Stars but ask them who represents them in their state's capital and you get a blank stare. The blame for all this mess rests squarely on our shoulders.