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Re: The Stimulus Bubble - Oil 

By: zzstar in FFFT3 | Recommend this post (1)
Fri, 12 Dec 14 5:45 AM | 43 view(s)
Boardmark this board | Food For Further Thought 3
Msg. 06050 of 65535
(This msg. is a reply to 06029 by killthecat)

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Here's the context you failed to provide, from your link:

"Stimulus Effect

The Fed's three rounds of bond buying were a gift to small companies in the capital-intensive energy industry that needed cheap borrowing costs to thrive, according to Chris Lafakis, a senior economist at Moody's Analytics in West Chester, Pennsylvania.

Quantitative easing "has been one of the keys to the fast, breakneck pace of the growth in U.S. oil production which requires abundant capital," Lafakis said.

One of those to take advantage was Energy XXI Ltd. (EXXI), an oil and gas explorer, which has raised more than $2 billion in the bond market in the past four years.

The Houston-based company's $750 million of 9.25 percent notes, issued in December 2010, have tumbled to 64 cents on the dollar from 106.3 cents in September, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. They yield 27.7 percent."

When all is well, everyone's happy. when all is not well, everyone blames Obama.

You can't have your cake and eat it too.

Do you want cheap gas or NOT? Do you want to be INDEPENDENT of FOREIGN OIL, or not?

At some point, people have to come to terms with CAPITALISM!
This is CAPITALISM.

Do you want it or not?

DECIDE!




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The above is a reply to the following message:
Re: The Stimulus Bubble - Oil
By: killthecat
in FFFT3
Fri, 12 Dec 14 5:09 AM
Msg. 06029 of 65535

A Fed-fed (cute huh?) speculator problem that can blow up in our faces.


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