Wednesday, January 28, 2009
Snow, Snow, Snow
I think CA is making its problems worse by halting tax refunds. Everyone's going to cut down on their withholding to avoid the problem, so cash flow is going to get worse!
US crude inventories: Compared to a year ago, crude oil stocks are up 15.5%, gasoline stocks are down 3.3% (which is less than the drop in demand), and distillate (diesel and heating oil) stocks are up 10.1%. Total of all products ex SPR is up 6.7% from a year ago. Oil prices keep trending up and then dropping when the inventories are released.
An interesting article about one take on the world economic situation:
The Institute of International Finance, the global organisation of major banks, predicted an almost unprecedented collapse in world economic growth and capital flows.More of their predictions:
It became the first major global institution to forecast a full-scale global contraction in 2009, predicting that the economy would shrink by 1.1pc.
- Capital flows into emerging European countries are more than halved this year and then halved again next year,
- Which causes current account defiicits to more than triple,
- Asia's experience will be worse than that of the currency crisis in the late 1990s,
- They're very worried about protectionist trends.