Wednesday, January 20, 2016

Peddling fiction since 2009.

This is how I read the news now. Well, I should say again. During parts of the Great Recession I had to use this is a tactic to figure out the world. Because every article I read was basically bullshit propaganda. Or I thought they just didn't know what they were talking about. It's very smoke and mirrors right now.

Headline - Here’s why you shouldn’t freak out about crude oil’s crash.

Me - Oh shit! I should freak out about the oil crash.

The article continues - Schwab’s Sonders argues oil’s drop won’t trigger U.S. recession.

Me - Great. We are in a recession. Which - we almost technically are. So, it's super crazy for someone at Schwab to say such a stupid thing. Manufacturing has been in technical contraction for two quarters. Three quarters of contraction is a technical recession by every standard. And oil is telegraphing that third quarter isn't looking great.

I don't know what is going to happen when people realize how much their pension funds are tied to oil stocks. They used to be the safe but boring play. The widows and orphans fund. First will go the divided. Which is really why most people bought them anyway. In Aug of last read I read an article about how CALPERS had lost 5 billion on their energy investments. I think oil was still up in the 40-50 dollar range but I will have to check.

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