World stocks set for third week of losses as oil falls back below $30

[snoop1130]

World stocks set for third week of losses as oil falls back below $30
Euronews

Concerns about global growth are alive and kicking. Commodity currencies took a beating on Friday (January 15) as oil prices fell back below30 dollars.

On Thursday (January 14), they posted their first significant gains of the year. But they came under new selling pressure with the impendingpossibility of additional Iranian supply.

World stock markets are set for a third straight week of losses. European shares are moving back towards Thursday’s 13-month lows – they’ve fallen more than one percent. Asian stocks, meanwhile, plummeted to three-and-a-half-year lows.

-- (c) Copyright Euronews 2016-01-15

[Asiantravel]

it would make sense for the oligarchs to have some sort of back-up plan for when the whole financial house of cards falls apart. Peacetime is fine for as long as it can placate the populace with bread and circuses, but when a financial calamity causes the economy to crater and bread and circuses turn scarce, a handy fallback is war

[lovelomsak]

Why are things not getting cheaper.When oil goes up prices go up.so should it not be when oil goes down prices go down? I think no one believes it will stay down so why bother lowering prices. to just raise them again.

[JHolmesJr]

Things just got expensive real fast with no rational reason….no they are just going back to normal….to their real prices….why can't these fatheads get it?

[onni4me]

The reason why things don't get cheaper is the enormous amount of QE. That makes prices (inflation) go up since salaries can't cope up with the inflation speed. Things aren't different this time either.

A lengthy but good article about how things stand for now and on:

http://www.resilience.org/stories/2016-01-11/2016-oil-limits-and-the-end-of-the-debt-supercycle

[car720]

Why are things not getting cheaper.When oil goes up prices go up.so should it not be when oil goes down prices go down? I think no one believes it will stay down so why bother lowering prices. to just raise them again.

Have you seen the movie ' the big short ' ......

The whole world of business if fraudulent and government sanctioned.

We mere serfs will always serve the nobles.

[Asiantravel]

The reason why things don't get cheaper is the enormous amount of QE. That makes prices (inflation) go up since salaries can't cope up with the inflation speed. Things aren't different this time either.

A lengthy but good article about how things stand for now and on:

http://www.resilience.org/stories/2016-01-11/2016-oil-limits-and-the-end-of-the-debt-supercycle

item number 9 on the list in your article says

" All in all, 2016 looks likely to be a much worse year than 2008 from a financial perspective. The problems will look similar to those that might have happened in 2008, but didn’t thanks to government intervention. This time, governments appear to be mostly out of approaches to fix the problems."

many people are saying this now including Damian McBride who was special adviser to Gordon Brown when he was prime minister. Damian McBride says the next crisis will be 20 times worse than the 2008 crisis. I'm surprised that grown-up adults could have honestly pin their hopes on such ridiculous concepts as " extend and pretend "

it was a Band-Aid solution that gave us a so-called recovery and now they have no more ammunition.

[Asiantravel]

Here's A Chart You Won't See On CNBC

[Gsxrnz]

The reason why things don't get cheaper is the enormous amount of QE. That makes prices (inflation) go up since salaries can't cope up with the inflation speed. Things aren't different this time either.

A lengthy but good article about how things stand for now and on:

http://www.resilience.org/stories/2016-01-11/2016-oil-limits-and-the-end-of-the-debt-supercycle

She (Gail Tverberg) produces some interesting and well written articles. It is her ability to write so well that makes her sound "right" in many of her assumptions.

And while I'm not suggesting she is wrong on every count, she does tend to make the conclusive assumption that the world as we know it is definitely going to end very soon.

In other articles she talks about total failure of the supply of electricity and implies that the "new world" can only support a population of 1 billion. In effect she is forecasting a return to the economy of the 1800's where a draft horse will be ploughing the fields, and not a tractor.

Because she has already concluded the ultimate outcome, she finds arguments to support this belief. There is no doubt she has considerable understanding of economics and puts up some interesting theories that do fly in the face of widely held economic theories.

However, I don't think she is objective enough in many areas of her research. Still, her articles make a very good read.

And as a disclaimer, I am not saying she is wrong, just that she is wrong in her quantitative analysis. Yes, there is going to be some serious financial crap happen this year - the writing is definitely on the wall. Make sure you have your cash in the most secure bank you can. In fact, the safest place for your cash in the next 3 years may well be under the mattress.

[Geordie59]

The reason why things don't get cheaper is the enormous amount of QE. That makes prices (inflation) go up since salaries can't cope up with the inflation speed. Things aren't different this time either.

A lengthy but good article about how things stand for now and on:

http://www.resilience.org/stories/2016-01-11/2016-oil-limits-and-the-end-of-the-debt-supercycle

item number 9 on the list in your article says

" All in all, 2016 looks likely to be a much worse year than 2008 from a financial perspective. The problems will look similar to those that might have happened in 2008, but didn’t thanks to government intervention. This time, governments appear to be mostly out of approaches to fix the problems."

many people are saying this now including Damian McBride who was special adviser to Gordon Brown when he was prime minister. Damian McBride says the next crisis will be 20 times worse than the 2008 crisis. I'm surprised that grown-up adults could have honestly pin their hopes on such ridiculous concepts as " extend and pretend "

it was a Band-Aid solution that gave us a so-called recovery and now they have no more ammunition.

I hope this Damian McBride wasn't special advisor to Gordon Brown when he was "finance minister" and sold off the UKs gold reserves at rock bottom prices......

[lovelomsak]

Imho I think it will be a bull market by end of 2016.

Escalating tension between Saudi Arabia and Iran

If us shale industry has to many problems with low cost can drive up prices.

If chinas economy turns around

If EU and Us put oil sanctions back in place concerning Iran.

Or I am wrong and the glut goes on indefinitely.

[donnybay]

How Big Oil Conquered the World

Got a spare hour?

[car720]

The reason why things don't get cheaper is the enormous amount of QE. That makes prices (inflation) go up since salaries can't cope up with the inflation speed. Things aren't different this time either.

A lengthy but good article about how things stand for now and on:

http://www.resilience.org/stories/2016-01-11/2016-oil-limits-and-the-end-of-the-debt-supercycle

She (Gail Tverberg) produces some interesting and well written articles. It is her ability to write so well that makes her sound "right" in many of her assumptions.

And while I'm not suggesting she is wrong on every count, she does tend to make the conclusive assumption that the world as we know it is definitely going to end very soon.

In other articles she talks about total failure of the supply of electricity and implies that the "new world" can only support a population of 1 billion. In effect she is forecasting a return to the economy of the 1800's where a draft horse will be ploughing the fields, and not a tractor.

Because she has already concluded the ultimate outcome, she finds arguments to support this belief. There is no doubt she has considerable understanding of economics and puts up some interesting theories that do fly in the face of widely held economic theories.

However, I don't think she is objective enough in many areas of her research. Still, her articles make a very good read.

And as a disclaimer, I am not saying she is wrong, just that she is wrong in her quantitative analysis. Yes, there is going to be some serious financial crap happen this year - the writing is definitely on the wall. Make sure you have your cash in the most secure bank you can. In fact, the safest place for your cash in the next 3 years may well be under the mattress.

In other words she knows all the right buzz words.

[sirineou]

You can not starve the cow and expect more milk,For the most part this is a consumer driven economy,

if the consumer is not consuming, China is not producing, Means of production are underutilized, commodities suffer. No surprise there

Remember, labor is a means of production, and labor fuels consumption.

What the oligarchs don't understand is that this is a symbiotic existence.

The mistake was made to bail out industry while neglecting the consumer.

With out a consumer who will industry be producing for?

If you are interested to see where things are going, look at transport stocks, a leading indicator IMO.Before anything can be produced or consumed, it must be transported. You would think low fuel prices would be a good thing for transports, but unfortunately for them , low fuel prices is a symptom of an underlying disease; that id fatal to them.

Look at CSX , notice the lows, notice where it is heading now, make your own conclusions.

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&es_th=1&ie=UTF-8#q=csx+stock

Have I thought this thru? Am I missing something? Always glad to hear from those more knowledgeable on the subject than me.

[Chicog]

These boys are a-hurtin'

Qatar Fuel (Woqod) has hiked petrol prices steeply with effect from midnight.

Following the raise, the price of Gasoline Super 97 is now QR1.30 per litre, an increase of 30% from the earlier QR1 and the price of Gasoline Premium 90 QR1.15 per litre, from QR0.85, a hike of 35%.

There is no increase in diesel prices. The last hike in petrol prices was in 2011, while diesel prices went up in 2014.

Read more here: http://www.gulf-times.com/story/475038/30-to-35-hike-in-Qatar-petrol-prices-from-Friday

[ggt]

The issue of stock losses is much more complicated than oil falling below $30 per barrel...Stocks have been inflated by countries dumping money into the markets to keep them afloat...giving the impression of strong economies...but actually just smoke and mirrors...the market was going to correct with or without oil...if there is a "black-swan" event (unexpected catastrophe) the markets could correct to 50% of their highs...it may be years before "real" economies gain traction again and stocks move up of their on volition...

The world's economic outlook is anemic at best...commerce has slowed significantly...raw materials are not in demand...time to pay off your loans and take a wait and see attitude...

[ExpatOilWorker]

The reason why things don't get cheaper is the enormous amount of QE. That makes prices (inflation) go up since salaries can't cope up with the inflation speed. Things aren't different this time either.

A lengthy but good article about how things stand for now and on:

http://www.resilience.org/stories/2016-01-11/2016-oil-limits-and-the-end-of-the-debt-supercycle

She (Gail Tverberg) produces some interesting and well written articles. It is her ability to write so well that makes her sound "right" in many of her assumptions.

And while I'm not suggesting she is wrong on every count, she does tend to make the conclusive assumption that the world as we know it is definitely going to end very soon.

In other articles she talks about total failure of the supply of electricity and implies that the "new world" can only support a population of 1 billion. In effect she is forecasting a return to the economy of the 1800's where a draft horse will be ploughing the fields, and not a tractor.

Because she has already concluded the ultimate outcome, she finds arguments to support this belief. There is no doubt she has considerable understanding of economics and puts up some interesting theories that do fly in the face of widely held economic theories.

However, I don't think she is objective enough in many areas of her research. Still, her articles make a very good read.

And as a disclaimer, I am not saying she is wrong, just that she is wrong in her quantitative analysis. Yes, there is going to be some serious financial crap happen this year - the writing is definitely on the wall. Make sure you have your cash in the most secure bank you can. In fact, the safest place for your cash in the next 3 years may well be under the mattress.

She use to write under the name "Gail the Actuary" on theoildrum and boy was she and everybody else there wrong!

http://ourfiniteworld.com/oil-drum-posts

[sirineou]

The issue of stock losses is much more complicated than oil falling below $30 per barrel...Stocks have been inflated by countries dumping money into the markets to keep them afloat...giving the impression of strong economies...but actually just smoke and mirrors...the market was going to correct with or without oil...if there is a "black-swan" event (unexpected catastrophe) the markets could correct to 50% of their highs...it may be years before "real" economies gain traction again and stocks move up of their on volition...

The world's economic outlook is anemic at best...commerce has slowed significantly...raw materials are not in demand...time to pay off your loans and take a wait and see attitude...

I am not sure if all of the above is correct

It is not the oils low price that is causing the decline in the stock market,

Energy is one of the means of production, low energy costs should in it's self lower the cost of production increasing profits.

That would had being true if the oil price decline do to new deposit being found , productivity. or new oil entering the market such as Iran.

But other than Iran entering the market, the rest is not true,

Oil prices is a symptom of a sick economy. like a fever is a symptom of a sick person.

Low consumer demand id the disease

[ggt]

The issue of stock losses is much more complicated than oil falling below $30 per barrel...Stocks have been inflated by countries dumping money into the markets to keep them afloat...giving the impression of strong economies...but actually just smoke and mirrors...the market was going to correct with or without oil...if there is a "black-swan" event (unexpected catastrophe) the markets could correct to 50% of their highs...it may be years before "real" economies gain traction again and stocks move up of their on volition...

The world's economic outlook is anemic at best...commerce has slowed significantly...raw materials are not in demand...time to pay off your loans and take a wait and see attitude...

I am not sure if all of the above is correct

It is not the oils low price that is causing the decline in the stock market,

Energy is one of the means of production, low energy costs should in it's self lower the cost of production increasing profits.

That would had being true if the oil price decline do to new deposit being found , productivity. or new oil entering the market such as Iran.

But other than Iran entering the market, the rest is not true,

Oil prices is a symptom of a sick economy. like a fever is a symptom of a sick person.

Low consumer demand id the disease

By the time you realize we are heading for a world recession and maybe depression...it will likely be too late to act to protect you assets from huge losses...

[sirineou]

The issue of stock losses is much more complicated than oil falling below $30 per barrel...Stocks have been inflated by countries dumping money into the markets to keep them afloat...giving the impression of strong economies...but actually just smoke and mirrors...the market was going to correct with or without oil...if there is a "black-swan" event (unexpected catastrophe) the markets could correct to 50% of their highs...it may be years before "real" economies gain traction again and stocks move up of their on volition...

The world's economic outlook is anemic at best...commerce has slowed significantly...raw materials are not in demand...time to pay off your loans and take a wait and see attitude...

I am not sure if all of the above is correct

It is not the oils low price that is causing the decline in the stock market,

Energy is one of the means of production, low energy costs should in it's self lower the cost of production increasing profits.

That would had being true if the oil price decline do to new deposit being found , productivity. or new oil entering the market such as Iran.

But other than Iran entering the market, the rest is not true,

Oil prices is a symptom of a sick economy. like a fever is a symptom of a sick person.

Low consumer demand id the disease

By the time you realize we are heading for a world recession and maybe depression...it will likely be too late to act to protect you assets from huge losses...

what makes you think I dont realize this already? I was under the impression that this is the point I am making, but in order for one to protect against it one needs to know what is happening.

How does one increase consumption with out an increase in wages. How does one increase wages.with out increase in demand?

Stimulus? but where western governments are spend. . Eyes on China they are sitting on a huge war-chest

How does one protects against a recession or depression?

I will be honest I dont know,how to protect the wealth I spend a lifetime building. any advise would be appreciated and considered.

[sirineou]

If I was China, I would be dumping large amounts of cash in Europe and the US, It was Europe and the US that created them, and it is Europe and the US that will pull them out .

and in the process would also increase their consumer base , making them less dependent on exports.

Too simplistic?

[Briggsy]

I will not panic.

I will not panic.

I will not panic.

I will not panic sell.

I will not panic sell.

Hold your nerve.

Buy on the dips.

[Asiantravel]

stunning! even CNBC throws in the towel and concedes how bad things are

CNBC: A RECESSION WORSE THAN 2008 IS COMING

http://www.cnbc.com/2016/01/15/a-recession-worse-than-2008-is-coming-commentary.html

[ExpatOilWorker]

stunning! even CNBC throws in the towel and concedes how bad things are:(

CNBC: A RECESSION WORSE THAN 2008 IS COMING

http://www.cnbc.com/2016/01/15/a-recession-worse-than-2008-is-coming-commentary.html

If half of that stuff is true, then we are doomed.

Will all our hard earned retirement savings be wiped out?

[sirineou]

stunning! even CNBC throws in the towel and concedes how bad things are:(

CNBC: A RECESSION WORSE THAN 2008 IS COMING

http://www.cnbc.com/2016/01/15/a-recession-worse-than-2008-is-coming-commentary.html

If half of that stuff is true, then we are doomed.

Will all our hard earned retirement savings be wiped out?

I don't understand this 300% of GDP debt figure that I see being thrown around. According to respected sources China's debt is 41% 0f GDP as of 2014

http://www.tradingeconomics.com/china/government-debt-to-gdp

China is sitting on 3.3 trillion of foreign exchange reserves.