The oil boom created by “fracking” is about to go bust because of the low price per barrel of oil. At the current price, it costs too much to get the oil out of the ground. Frackers borrowed too much money to set up their businesses, and needed to sell oil at significantly higher prices to make a profit. According to zerohedge.com, the bankruptcies have just begun:
“There are too many ugly balance sheets,” warns one energy industry analyst, adding simply that “the group is not positioned for this downturn.” While the mainstream media continues to chant the happy-clappy side of lower oil prices, spewing various ‘statistics’ about how the down-side of low oil prices is ‘contained’ and the huge colossal massive tax cut means ‘everything is awesome’ for America, the data – and now actions – do not bear this out. Macro data has done nothing but disappoint and now, we have the first casualty of the shale oil leverage debacle as WSJ reports, on Sunday, a private company that drills in Texas, WBH Energy LP, and its partners, filed for bankruptcy protection, saying a lender refused to advance more money. There are many more to come…
Submitted by Tyler Durden on 05/06/2013 – 13:40
Just in case conventional wisdom thought there was some limit beyond which financial crime and fraud in the US would or could not cross, here comes the city of Harrisburg, bankrupt for nearly two years, proving everyone wrong as usual. ‘The Securities and Exchange Commission today charged the City of Harrisburg, Pa., with securities fraud for its misleading public statements when its financial condition was deteriorating and financial information available to municipal bond investors was either incomplete or outdated.”
Serious stuff here. It’s highly recommended you watch and learn.
I came across this blog post from Moonbattery. I thought those of you who either are putting money away in a retirement plan or are drawing an income from one might like to know what some fools have in mind for YOUR money:
As Margaret Thatcher observed, sooner or later socialists run out of other people’s money. But the looting won’t stop until they have stolen your last penny. Did you expect to have a secure retirement after working your whole life? Sucker:
At a three-day conference in New York that began on Wednesday, [Jesse] Jackson discussed a proposal for increasing the availability of capital by using pension money to make loans in low-income communities. The idea is getting a prominent debut at the 16th annual Wall Street Project Economic Summit, hosted by Mr. Jackson’s Rainbow PUSH Coalition and the Citizenship Education Fund.
He isn’t just shouting this Marxist lunacy through a bullhorn at some ghetto street corner.
The conference features some big names, with a keynote speech from former President Bill Clinton.
In plain terms, Jackson is advocating a smash and grab theft of pension money.
I just thought you should know. Read the whole post here: http://moonbattery.com/?p=24914