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Monday, August 08, 2011

Sitting Here Watching Nymex Crude Futures Fall

Down to the high 70s now.

As difficult as this period is, at least in part the correction is necessary to stave off a really nasty worldwide downturn. What we will get in terms of the global economy depends, in part, on this collapse.

$76 now.... Going, going, gone....

I'm throwing you a chicken bone.

Summary Box: Tyson profit falls 21 pct on weak chicken business, but tops expectations on pork

"CHICKEN LAGS: An oversupply in the poultry industry has kept prices depressed. Poultry demand has remained stubbornly low as cash-strapped families cut back on restaurant dining and prepared meals that once underpinned chicken sales."

Perhaps QE3, QE4, and QE5 can miraculously alter the trend.
Buck cluck CLUCK!

That is a world-beater headline.
I hope you're right, but never count out Bernanke mucking it up with the aforementioned QE.
Good gosh, I wish they would all just go on a long vacation and leave well enough alone.
Anon pa
Karl Denninger made this observation today regarding the bank sell off. MOM whats your take?

"Note that given the utter fraud of allowing a bank to count "Shareholder's Common Equity" as capital, when it cannot be spent, means that precipitous stock price drops like this can instantly render a bank insolvent. Why? Because paid-in capital isn't being held in reserve, that's why, and when the price declines like this the company can't issue more stock into the market.

This leaves you with only one real choice - a firesale of assets so as to bring your coverage of liabilities back within assets. What happens if your assets are being held on the balance sheet at fantasy prices?"
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