Thursday, March 8, 2018
Globalization Is Going Out of Business
What Globalization represents is overinvestment in collapse. The recycling of excess capital into excess capacity. Of course, we could have learned that lesson in 2014 via the crude oil market, but instead, yield-starved gamblers recapitalized the shale industry, because they preferred return on capital over return of capital...
I just noticed that the S&P 500 is tracking oil 1:1 now. Oil is carving out its fourth lower high since late January and now sits on the seven month trendline:
"Over the next three years, the U.S. will cover 80 percent of the world’s demand growth, the IEA says in its newly-released Oil 2018 annual report. Canada, Brazil and Norway will cover the remainder, leaving no room for more OPEC supply."
The irony is that the substantial gains in output from shale will only be possible because of the OPEC cuts, which has tightened the market and boosted prices"
On a related topic, credit card debt just saw its biggest increase in 30 years during the fourth quarter:
We always have Tech
Posted by Mac10 at 3:00 PM