33 minutes ago
You never get used to the arrogant hypocrisy of a regime that has lied endlessly about a nonexistent economic "recovery" yet has the audacity to say anyone with a different opinion is "peddling fiction" (the last SOTU).Here's some MORE fiction.Gasoline is under a buck. A gallon of gas for less than a dollar. Something I thought I'd never see again.- And it's not just Americans, but the Canadians that are suffering.But what's wrong with cheap gas?For one thing, it's very bad when you are a major TBTF bank that is "belly up" on oil-related derivatives.- Wells Fargo's CFO has said that most of their energy exposure, about $17 billion worth, is non-investment grade.- Citi's CFO will neither confirm nor deny an amount, but looking at their numbers it's close to $19 billion of non-investment grade.When financial 'magic' can't hide the problem [read: being upside-down on your investments] then it is time to rewrite the rules (suspend mark-to-market) to avoid triggering any derivative defaults.For another thing, the oil-gold ratio suggests that even MORE pain lies ahead for the economy.That's what's wrong with oil being cheaper than beer.
From Theo Spark at 09:26