Higher crude prices over the past 6 weeks allowed already heavily indebted energy producers to sell even more debt to ‘investors’. This will enable even more excess production to come to market. So long as the belief in higher prices persists, we are unlikely to find a durable bottom this cycle.
Discussing the potential for the oil production freeze, and current supply and demand dynamics John Kilduff, Again Capital. Here is a direct video link.
People’s Bank of China Governor Zhou Xiaochuan warned in a speech in Beijing on the weekend that corporate debt has become too high. This leaves the companies less able to tolerate the ongoing decline in global sales and increasing delay in the collection of customer accounts. Chinese insolvencies were up 25% in 2015 and rising…
Danielle was a guest on This Week in Money with Jim Goddard on the weekend, talking about recent developments in the world economy and markets. You can listen to an audio clip of the segment here by advancing the playbar to 26:36 where her interview starts.
Cory’s Chart Corner
Humans just repeat the same old themes decade after decade. Today there is far more debt to service, thus greater financial impact on spending. Ask Walmart's CEO if he's noticed any change in consumer behavior while the U.S 10 years hits 5%.
Don’t forget in April of 2007 10 year hit 5.3% and by October of 2008 they were 2%.
