{"id":2327,"date":"2014-12-02T07:53:27","date_gmt":"2014-12-02T12:53:27","guid":{"rendered":"http:\/\/olduvai.ca\/?p=2327"},"modified":"2014-12-02T07:53:27","modified_gmt":"2014-12-02T12:53:27","slug":"guess-what-happened-the-last-time-the-price-of-oil-crashed-like-this","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=2327","title":{"rendered":"Guess What Happened The Last Time The Price Of Oil Crashed Like This?&#8230;"},"content":{"rendered":"<p><a href=\"http:\/\/theeconomiccollapseblog.com\/archives\/guess-happened-last-time-price-oil-crashed-like\">Guess What Happened The Last Time The Price Of Oil Crashed Like This?&#8230;<\/a>.<\/p>\n<p style=\"display: block; padding: 0px; margin: 1em 0px 1em 0px;\">There has only been one other time in history when the price of oil has crashed by more than 40 dollars in less than 6 months.\u00a0 The last time this happened\u00a0<a style=\"color: #4f809e; font-weight: bold; text-decoration: none;\" title=\"was during the second half of 2008\" href=\"http:\/\/theeconomiccollapseblog.com\/archives\/just-witness-last-great-black-friday-celebration-american-materialism\">was during the second half of 2008<\/a>, and the beginning of that oil price crash preceded the great financial collapse that happened later that year by several months.\u00a0 Well, now it is happening again, but this time the stakes are even higher.\u00a0 When the price of oil falls dramatically, that is a sign that economic activity is slowing down.\u00a0 It can also have a tremendously destabilizing affect on financial markets.\u00a0 As you will read about below, energy companies now account for approximately 20 percent of the junk bond market.\u00a0 And a junk bond implosion is usually a signal that a major stock market crash is on the way.\u00a0 So if you are looking for a \u201ccanary in the coal mine\u201d, keep your eye on the performance of energy junk bonds.\u00a0 If they begin to collapse, that is a sign that all hell is about to break loose on Wall Street.<\/p>\n<p style=\"display: block; padding: 0px; margin: 1em 0px 1em 0px;\">It would be difficult to overstate the importance of the shale oil boom to the U.S. economy.\u00a0 Thanks to this boom, the United States has become\u00a0<a style=\"color: #4f809e; font-weight: bold; text-decoration: none;\" title=\"the largest oil producer\" href=\"http:\/\/www.bloomberg.com\/news\/2014-07-04\/u-s-seen-as-biggest-oil-producer-after-overtaking-saudi.html\" target=\"_blank\">the largest oil producer<\/a>\u00a0on the entire planet.<\/p>\n<p style=\"display: block; padding: 0px; margin: 1em 0px 1em 0px;\">Yes, the U.S. now actually produces more oil than either Saudi Arabia or Russia.\u00a0 This \u201crevolution\u201d has resulted in the creation of\u00a0\u00a0<a style=\"color: #4f809e; font-weight: bold; text-decoration: none;\" title=\"millions of jobs\" href=\"http:\/\/www.midwestenergynews.com\/2013\/01\/10\/u-s-chambers-fracking-job-boom-behind-the-numbers\/\" target=\"_blank\">millions of jobs<\/a>\u00a0since the last recession, and it has been one of the key factors that has kept the percentage of Americans that are employed\u00a0<a style=\"color: #4f809e; font-weight: bold; text-decoration: none;\" title=\"fairly stable\" href=\"http:\/\/theeconomiccollapseblog.com\/wp-content\/uploads\/2014\/10\/Employment-Population-Ratio-2014.png\" target=\"_blank\">fairly stable<\/a>.<\/p>\n<p style=\"display: block; padding: 0px; margin: 1em 0px 1em 0px;\">Unfortunately, the shale oil boom is coming to an abrupt end.\u00a0 As a recent\u00a0<a style=\"color: #4f809e; font-weight: bold; text-decoration: none;\" title=\"Vox article discussed\" href=\"http:\/\/www.vox.com\/2014\/11\/28\/7302827\/oil-prices-opec\" target=\"_blank\">Vox article discussed<\/a>, OPEC has essentially declared a price war on U.S. shale oil producers\u2026<\/p>\n<p style=\"display: block; padding: 0px; margin: 1em 0px 1em 0px;\">&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Guess What Happened The Last Time The Price Of Oil Crashed Like This?&#8230;. There has only been one other time in history when the price of oil has crashed by more than 40 dollars in less than 6 months.\u00a0 The last time this happened\u00a0was during the second half of 2008, and the beginning of that [&hellip;]<\/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":[236,592,1572,1264],"class_list":["post-2327","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-economic-collapse","tag-oil-price","tag-oil-price-crash","tag-recession"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2327","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=2327"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2327\/revisions"}],"predecessor-version":[{"id":2328,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2327\/revisions\/2328"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}