Drill baby drill?

[dvduval]

We are facing a massive oversupply of oil worldwide. Markets today all went negative. The Dow lost more than it has since February 2014. Many energy companies especially in the shale industry are facing the prospect of going out of business and defaulting on debt. In addition there are many other corporate bonds out there right now letter looking a bit more like junk.

Just wanted to point out this drill baby drill advice is it panning out so well right now.

Then of course there was the warning about interest rates were going to jump up. We have been at 6 years of near zero interest rates, and now we see countries devaluing their currencies so it is more a race to the bottom and no inflation in sight.

Mostly we are observing billionaires who think they are geniuses doing all kinds of crazy things with their money, & I can just about assure you we are going to see some other major financial calamity in the near future.

We need is to progress baby progress... to a progressive tax system that reduces the likelihood that billionaires are going to make some idiotic mistakes that harm the rest of us.

[jonno99]

1. What’s Behind the Drop? Simple Economics (it's a cutthroat buisness)

A good analysis by the NYT:

-snip-

Iran, Venezuela and Algeria have been pressing the cartel to cut production to firm up prices, but Saudi Arabia, the United Arab Emirates and other gulf allies are refusing to do so. At the same time, Iraq is actually pumping more.

Saudi officials have said that if they cut production and prices go up, they will lose market share and merely benefit their competitors (shale oil producers). They say they are willing to see oil prices go much lower, but some oil analysts think they are merely bluffing.

-snip-

http://www.nytimes.com/interactive/2015/business/energy-environment/oil-prices.html?_r=0