{"id":16666,"date":"2016-01-19T14:57:24","date_gmt":"2016-01-19T19:57:24","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16666"},"modified":"2016-01-19T14:57:42","modified_gmt":"2016-01-19T19:57:42","slug":"the-oil-crash-of-2016-has-the-big-banks-running-scared","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16666","title":{"rendered":"The Oil Crash Of 2016 Has The Big Banks Running Scared"},"content":{"rendered":"
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The Oil Crash Of 2016 Has The Big Banks Running Scared<\/a><\/h3>\n<\/div>\n
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\"Running<\/a>Last time around it was subprime mortgages, but this time it is oil that is playing a starring role in a global financial crisis.\u00a0 Since the start of 2015,\u00a042 North American oil companies<\/a>\u00a0have filed for bankruptcy,\u00a0130,000 good paying energy jobs<\/a>\u00a0have been lost in the United States, and at this point 50 percent of all energy junk bonds are \u201cdistressed\u201d according to Standard & Poor\u2019s.\u00a0 As you will see below, some of the big banks have a tremendous amount of loan exposure to the energy industry, and now they are bracing for big losses.\u00a0 And the longer the price of oil stays this low, the worse the carnage is going to get.<\/p>\n

Today, the price of oil has been hovering around 29 dollars a barrel, and over the past 18 months the price of oil has fallen\u00a0by more than 70 percent<\/a>.\u00a0 This is something that has many U.S. consumers very excited.\u00a0 The average price of a gallon of gasoline nationally is just $1.89 at the moment, and on Monday it was selling for as low as\u00a046 cents<\/a>\u00a0a gallon at one station in Michigan.<\/p>\n

But this oil crash is nothing to cheer about as far as the big banks are concerned.\u00a0 During the boom years, those banks gave out billions upon billions of dollars in loans to fund exceedingly expensive drilling projects all over the world.<\/p>\n

Now those firms are dropping like flies, and the big banks could potentially be facing absolutely catastrophic losses.\u00a0 The following examples come\u00a0from CNN<\/a>\u2026<\/p>\n

For instance, Wells Fargo (WFC) is sitting on more than\u00a0$17 billion<\/strong>\u00a0in loans to the oil and gas sector. The bank is setting aside\u00a0$1.2 billion<\/strong>\u00a0in reserves to cover losses because of the \u201ccontinued deterioration within the energy sector.\u201d<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Oil Crash Of 2016 Has The Big Banks Running Scared Last time around it was subprime mortgages, but this time it is oil that is playing a starring role in a global financial crisis.\u00a0 Since the start of 2015,\u00a042 North American oil companies\u00a0have filed for bankruptcy,\u00a0130,000 good paying energy jobs\u00a0have been lost in the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[1361,63,5270,173,11812,181,5983,2605,11813,11814,312,2240,1297,2541,11815,488,4901,2339,2489,11816,7288,11432,11433],"class_list":["post-16666","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-bankruptcy","tag-banks","tag-big-banks","tag-crash","tag-crash-of-2016","tag-crisis","tag-economiccollapseblog","tag-energy-industry","tag-energy-jobs","tag-energy-junk-bonds","tag-financial-crisis","tag-global-financial-crisis","tag-junk-bonds","tag-loan","tag-loan-exposure","tag-loans","tag-michael-snyder","tag-mortgages","tag-oil-companies","tag-standard-poors","tag-subprime-mortgages","tag-what-is-coming-in-2016","tag-what-is-going-to-happen-in-2016"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16666"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16666\/revisions"}],"predecessor-version":[{"id":16668,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16666\/revisions\/16668"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}