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Post by John Winston Lennon O'Boogie on Jan 18, 2016 12:42:16 GMT -5
www.zerohedge.com/news/2016-01-17/us-bank-counterparty-risk-soars-after-energy-mtm-debacleA little more about the oil mark to market suppression. What has gone unnoticed is the energy companies will be forced to sell assets instead of the business as usual write-downs followed by bail-outs. Big shift in how business is done. Credit swaps as hedges are blowing up with the continued deterioration on oil prices. It is the controlled demolition of the old system into the new and an attempt at an orderly unwind as possible will be made. The contagion needs to be kept in check as much as possible thru the unwind. The era of TBTF is officially over. www.thefiscaltimes.com/latestnews/2015/11/30/Fed-take-too-big-fail-emergency-lending-curbLimits were placed on the FED Reserve this past November on its bail-out powers which are now formally implemented. Bye bye TBTF. www.reuters.com/article/us-fed-banks-livingwills-idUSKCN0UT1ZBAs the link above shows, over 120 financial institutions labeled as SIFI (Systematically Important Financial Institutions AKA "TBTF") submitted their "living wills" this past Friday. Please note some institutions had until July 1st for submission but were pushed to move it up to Jan 15th. Living wills are the TBTF structured bankruptcy plans. If regulators disagree with the plans they may begin to carve up the institution. The disgraceful repeal of Glass-Steagall is about to be rectified. www.zerohedge.com/news/2016-01-17/iran-unleashes-oil-flood-will-quintuple-crude-revenue-2016On Friday, sanctions on Iran were lifted and Iran will now flood the market with oil. Barring a geopolitical event to force oil up, I will venture a guess oil will move below $10 a barrel as the oil flood continues, causing credit swaps/derivatives to implode at an even more accelerated pace, hence the need for suppression of the mark to market while financial institutions go thru restructuring before bonds go BOOM. D Dan On Friday, sanctions on Iran were lifted and Iran will now flood the market with oil. Barring a geopolitical event to force oil up, I will venture a guess oil will move below $10 a barrel as the oil flood continues, causing credit swaps/derivatives to implode at an even more accelerated pace, hence the need for suppression of the mark to market while financial institutions go thru restructuring before bonds go BOOM. D Dan will move below $10 a barrel
that will NEVER happen
Mike
Don't bet your bottom Dollar on it... |
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Post by mygirlwantsarock on Jan 18, 2016 13:47:50 GMT -5
money.cnn.com/interactive/economy/the-cost-to-produce-a-barrel-of-oil/index.html?iid=ELCharts are cool. Here is the oil producers cost per barrel. Iran is @ $12.60 a barrel and the Saudis are below $10 a barrel. Iran just added 1/2 million barrels and are looking to quadruple production. Simple economics dictates OPEC and non members curb output but instead are choking the market. The de-coupling continues unabated unless geopolitical factors change the landscape. Look out below D Dan
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Post by John Winston Lennon O'Boogie on Jan 18, 2016 13:53:45 GMT -5
No joke! Gas is 47 cents per gallon in one Michigan town
Jan 18th 2016 11:13AM HOUGHTON LAKE, Mich. (WXMI) -- An apparent gas war has forced the cost of a gallon of gasoline to plummet to some jaw dropping lows. According to GasBuddy.com, the Beacon and Bridge Market in Houghton Lake is selling gas for as low as 47 cents per gallon. Gas Buddy.com says the price of petroleum dropped from 78 cents per gallon earlier today and the sudden drops makes Michigan the first state to see prices below $1 per gallon in years. SEE MORE: Incredibly small group owns half of the world's wealth Other media reports say rival stations in Houghton Lake have dropped their prices to match Beacon and Bridge. No word on how long the prices will stay this low. www.aol.com/article/2016/01/18/no-joke-gas-is-47-cents-per-gallon-in-one-michigan-town/21298935/?icid=maing-grid7%7Cmain5%7Cdl2%7Csec1_lnk2%26pLid%3D180675329
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Post by John Winston Lennon O'Boogie on Jan 18, 2016 13:55:23 GMT -5
Iran ordered a steep increase in oil output on Monday to take immediate advantage of the lifting of international sanctions, and some foreign firms raced to sign contracts with Iran.
Others were more wary, mindful of the risk of falling foul of residual U.S. penalties despite the lifting of nuclear-related sanctions on Saturday by the United States, European Union and United Nations.
The measures were scrapped as part of a landmark deal between Iran and world powers, rewarding the Islamic Republic for scaling back its atomic energy program in ways that U.S. President Barack Obama said would prevent it from getting its hands on a nuclear bomb.
The agreement restores Iran's access to tens of billions of dollars in frozen assets, reopens the country to foreign investment and allows it to resume selling oil on world markets, albeit at a time when they are drowning in excess supply.
Deputy Oil Minister Rokneddin Javadi said Iran could increase output by 500,000 barrels a day "and the order to increase production was issued today".
The sanctions revoked at the weekend had cut Iran's oil exports by about 2 million barrels per day (bpd) since their pre-sanctions 2011 peak, to little more than 1 million bpd.
Oil prices touched their lowest since 2003 on Monday as the market braced for additional Iranian oil exports.
The lifting of sanctions opens up business opportunities across a host of sectors, from planes to telecoms.
"Iran is a huge market and in our focus," Kaan Terzioglu, head of Turkey's biggest mobile operator, Turkcell, said in an interview with Reuters.
He said Iran could be a target market as the company looks for regional acquisitions: "We are closely watching the Iranian market and in touch with all of its fixed line and mobile operators."
Related Coverage
› Rouhani says Iran will honor nuclear deal if West does the same
DEALS AND DIPLOMACY
A clutch of German firms were among those to signal their appetite to ramp up business ties with Tehran, and the Berlin government said it planned to revive state export guarantees for companies that wanted to do so.
Daimler said its trucks division had signed letters of intent with joint venture partners in Iran in order to re-enter the market, where it was selling up to 10,000 vehicles a year until 2010.
Herrenknecht, a family-run German tunnelling company that helped to build the Tehran metro in the 1990s, said it expected Iran to put up new projects for tender, and it was ready to pounce on the opportunity.
Commerzbank said it was reviewing the possibility of returning to Iran, less than a year after agreeing to pay $1.45 billion to U.S. authorities for sanctions violations partly linked to the country.
Switzerland's Zurich Insurance said it would look into insurance cover for corporate customers doing business with Iran. The head of British Airways' parent company IAG said it hoped to start flying to Tehran "in the very near future".
Russia, another party to last year's nuclear deal, said it was looking to sell military helicopters to Iran and export more grain. India's national aluminum company NALCO said it would soon send a team to Iran to explore setting up a smelter complex worth about $2 billion, taking advantage of cheap and plentiful gas there.
In a burst of diplomatic activity that will provide opportunities for discussing investment deals, Chinese President Xi Jinping will visit both Iran and its regional arch-rival Saudi Arabia this week.
In Rome, a diplomatic source said Iranian President Hassan Rouhani would travel to Italy and France next week on his first trip to Europe since the lifting of sanctions.
The nuclear deal removed restrictions that stifled Iran's economy for most of this decade - on banking, money transfers, insurance, trade, transport and technology procurement.
This will allow Iran to satisfy pent-up demand for goods and services that it had trouble obtaining at affordable prices under sanctions, from aircraft to factory machinery, medicines and some consumer goods such as cosmetics and branded clothing.
In an indication of the scale of potential deals, the transport minister said at the weekend that Iran intended to buy 114 civil aircraft from Airbus - a deal that could be worth more than $10 billion at catalogue prices. Airbus said on Saturday it had not yet held commercial talks with Iran.
Related Coverage
› Spain seizes on end of Iran's sanctions with plan for joint refinery
› Audi's says Iran talks spurred by potential for luxury cars
OPPORTUNITIES AND RISKS
Entering the Iranian market is not without risks: indebted local banks, a primitive legal system, corruption and an inflexible labor market. Many foreign companies will remain wary that sanctions could "snap back" if Tehran is later found in breach of the nuclear agreement.
"A lot of work has been done to get to where we are now. A similar and sustained effort will be required in the future," U.N. nuclear watchdog chief Yukiya Amano said on a visit to Tehran. "We must maintain the momentum."
U.S. companies look set to lag rivals from other countries in restoring trade with Iran, because Washington will retain broad sanctions that predate the nuclear crisis and were imposed over other issues such as terrorism and human rights abuses.
But U.S. business with Iran may still increase, after the U.S. Treasury said on Saturday that it would permit foreign subsidiaries of American companies to trade with Iran - a channel that big multinationals may be able to exploit.
A big foreign investment presence may take longer to rebuild than trade ties. Some firms may want to wait until they see the stance of the next U.S. president toward Iran; many will worry about "reputational risk", or exposure to legal action from shareholders or lobby groups, if they invest there.
Further complicating the picture, the United States imposed new sanctions on Sunday on 11 companies and individuals for supplying Iran's ballistic missile program, even as it removed the old nuclear-related measures and carried out an exchange of prisoners with Tehran.
The new sanctions are much smaller in scope, but Tehran denounced them on Monday. Foreign ministry spokesman Hossein Jaberi Ansari said they had "no legal or moral legitimacy", because U.S. weaponry sold to regional allies was used to commit "war crimes against Palestinian, Lebanese and most recently Yemeni citizens".
(Additional reporting by Bozorgmehr Sharafedin in Dubai, Edward Taylor, Irene Preisinger and Georgina Prodhan in Frankfurt, Michael Nienaber and Gernot Heller in Berlin, Conor Humphries in Dublin, Jatindra Dash and Krishna N. Das in New Delhi; Writing by Mark Trevelyan, editing by Peter Millership)
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Post by MannyFin on Jan 19, 2016 11:27:44 GMT -5
Someone should tell California about low gas prices, its still 2.89 a gallon here!!!
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Post by John Winston Lennon O'Boogie on Jan 19, 2016 11:33:38 GMT -5
Someone should tell California about low gas prices, its still 2.89 a gallon here!!! Why don't you just yell it out of your window..  |
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Post by raidermike99 on Jan 19, 2016 12:17:31 GMT -5
Someone should tell California about low gas prices, its still 2.89 a gallon here!!! that's because 2.88 of it is taxes |
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Post by vulcanized crawler on Jan 19, 2016 12:31:58 GMT -5
taxafornia....i moved from cali to florida and got a raise when i did with same pay. yep, lots of tax there.
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Post by Display Name on Jan 21, 2016 13:26:07 GMT -5
My advice - sit back for a week or so and watch the fireworks. Blessings to all, Al Hodges It's been well over a week or so. Where's the fireworks? |
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Post by skoondog on Jan 21, 2016 20:45:11 GMT -5
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Post by marbearcat on Jan 21, 2016 21:26:25 GMT -5
Man folks, I have had a few comments made by a few folks and I'm getting  ??Some folks are playing some ugly games... Skoondog Have no idea what you are talking about. Huh? |
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Post by marbearcat on Jan 21, 2016 21:29:18 GMT -5
Man folks, I have had a few comments made by a few folks and I'm getting ??Some folks are playing some ugly games... Skoondog Ok, I get what you're saying. Pretty much peeps are talking chit again and then nothing happens. >"< |
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Post by vulcanized crawler on Jan 22, 2016 7:13:59 GMT -5
fireworks took a break as oil and stocks rose, will start again. the end is near. gold, silver, bitcoin and God. hold them dear
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Post by John Winston Lennon O'Boogie on Jan 22, 2016 9:06:52 GMT -5
fireworks took a break as oil and stocks rose, will start again. the end is near. gold, silver, bitcoin and God. hold them dear You mean---> God, Gold, Silver and DIAMONDS... Bitcoin goes no where in my book.. And God is first in my book....  |
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Post by John Winston Lennon O'Boogie on Jan 22, 2016 10:02:20 GMT -5
Stronger downside risks, including China’s change of growth model, lower commodity prices, and “asynchronous” monetary policy around the world prompted the International Monetary Fund (IMF) to lower its global growth outlook, IMF Managing Director Christine Lagarde told Yahoo Finance editor-in-chief Andy Serwer at the World Economic Forum in Davos, Switzerland. The IMF pared its global growth forecast to 3.4% in 2016, a decline of 0.2% from the agency’s prior estimate in October. Lagarde warned of consequences as the world faces weaker growth. “There will be fewer jobs created around the world, and there will be countries that will struggle, particularly those suffering from the double downside risks, which is the trade relationship with China slowing down a bit and lower commodity prices,” said Lagarde. “This will affect some of the emerging market economies and low income countries that are vastly commodity export dependent.” Growth in China, the world’s second-largest economy, hit a quarter-century low, falling to 6.9% after the fourth quarter slowed to 6.8%. The IMF forecasts an expansion of 6.3% in 2016 and 6.0% in 2017, which represent sharp slowdowns from 2015. Meanwhile, oil is trading near its lowest level in 12 years as concerns about a supply overhang weighs on prices. International benchmark Brent is down more than 25% so far in January and on track for its worst month since 2008. Despite the rocky start to 2016 and the IMF’s recent downgrade, it’s not time for investors to panic, Lagarde said. “[3.4% growth] is not that bad; it would be better than last year,” she said. “We believe that the situation is manageable as long as [all policy makers] upgrade their monetary policies, cooperate with each other and not just look at their domestic situation, but how [their actions] will impact the rest of the world. There is volatility. There will be more than what we had in the immediate post crisis years, but it’s also a phenomenon that we have to get used to and anticipate.” Lagarde’s call for cooperation from all monetary policy makers comes on the heels of the U.S. Federal Reserve’s decision to raise interest rates in December. Lagarde warned of hiking rates too quickly, saying that the IMF is “more supportive of a raise in early 2017 rather than late 2016” and that she hopes there will be “clear focus on inflation variations and movement” when the Fed decides on its next move. Lagarde, whose current five-year term as head of the IMF is set to expire in July, is widely considered a sure bet for another term. The United Kingdom, France, and Germany have come out in support of Lagarde’s re-election. finance.yahoo.com/news/christine-lagarde--recent-market-turmoil-is-manageable-160408513.html# |
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