{"id":3033,"date":"2014-12-15T14:50:50","date_gmt":"2014-12-15T19:50:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=3033"},"modified":"2014-12-15T14:50:50","modified_gmt":"2014-12-15T19:50:50","slug":"crash-o-matic-finance-kunstler","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=3033","title":{"rendered":"Crash-O-Matic Finance | KUNSTLER"},"content":{"rendered":"<p><a href=\"http:\/\/kunstler.com\/clusterfuck-nation\/crash-o-matic-finance\/\">Crash-O-Matic Finance | KUNSTLER<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; text-align: left; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 1.2em 0px; border: 0px initial initial;\"><span style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; padding: 0px; margin: 0px; border: 0px initial initial;\">\u201c<\/span><em style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px; border: 0px initial initial;\">Oil prices have dropped $50 a barrel. That may not sound like much. But when you take $107 and you take $57, that\u2019s almost a 47 percent decline<\/em><span style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; padding: 0px; margin: 0px; border: 0px initial initial;\">\u2026!\u201d<\/span><br \/>\n<span style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; padding: 0px; margin: 0px; border: 0px initial initial;\">\u2013James Puplava,\u00a0<\/span><em style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px; border: 0px initial initial;\">The Financial Sense News Network<\/em><\/p>\n<p style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 1.2em 0px; border: 0px initial initial;\"><span style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; padding: 0px; margin: 0px; border: 0px initial initial;\">May not sound like much? I guess when you hunker down in the lab with the old slide rule and do the math, wow! Those numbers really pop!<\/span><\/p>\n<p style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 1.2em 0px; border: 0px initial initial;\"><span style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; padding: 0px; margin: 0px; border: 0px initial initial;\">This, of course, is the representative thinking out there. But then, these are the very same people who have carried pompoms and megaphones for \u201cthe shale revolution\u201d the past couple of years. Being finance professionals they apparently failed to notice the financial side of the business, for instance the fact that so much of the day-to-day shale operation was being run on junk bond financing.<\/span><\/p>\n<p style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 1.2em 0px; border: 0px initial initial;\"><span style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; padding: 0px; margin: 0px; border: 0px initial initial;\">It all seemed to work so well in the eerie matrix of zero interest rate policy (ZIRP) where investors desperate for \u201cyield\u201d \u2014 i.e. some return more-than-zilch on their money \u2014 ended up in the bond market\u2019s junkyard. These investors, by the way, were the big institutional ones, the pension funds, the insurance companies, the mixed bond smorgasbord funds. They were getting killed on ZIRP. In the good old days of the late 20<\/span><sup style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px; border: 0px initial initial;\">th<\/sup><span style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; padding: 0px; margin: 0px; border: 0px initial initial;\">\u00a0century, before Federal Reserve omnipotence, they could depend on a regular annual interest rate churn of between 5 and 10 percent and do what they had do \u2014 write pension checks, pay insurance claims, and pay clients, with a little left over for company salaries.<\/span><\/p>\n<p style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 1.2em 0px; border: 0px initial initial;\"><!-- [if gte mso 9]><xml>\n <w:WordDocument>\n  <w:Zoom>0<\/w:Zoom>\n  <w:DisplayHorizontalDrawingGridEvery>0<\/w:DisplayHorizontalDrawingGridEvery>\n  <w:DisplayVerticalDrawingGridEvery>0<\/w:DisplayVerticalDrawingGridEvery>\n  <w:UseMarginsForDrawingGridOrigin\/>\n <\/w:WordDocument>\n<\/xml><![endif]--> <!--StartFragment--><\/p>\n<p class=\"MsoNormal\"><a name=\"OLE_LINK1\"><\/a><span style=\"font-size: 13.0pt; font-family: LucidaGrande; color: #282828;\">&#8230;click on the above link to read the rest of the article&#8230;<\/span><\/p>\n<p style=\"outline-width: 0px; outline-style: initial; outline-color: initial; font-size: 17px; vertical-align: top; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 1.2em 0px; border: 0px initial initial;\"><!--EndFragment--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crash-O-Matic Finance | KUNSTLER. &nbsp; \u201cOil prices have dropped $50 a barrel. That may not sound like much. But when you take $107 and you take $57, that\u2019s almost a 47 percent decline\u2026!\u201d \u2013James Puplava,\u00a0The Financial Sense News Network May not sound like much? I guess when you hunker down in the lab with the [&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],"tags":[124,303,305,594,1940,1939],"class_list":["post-3033","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-fed","tag-federal-reserve","tag-oil-prices","tag-zero-interest-rate-policy","tag-zirp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3033","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=3033"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3033\/revisions"}],"predecessor-version":[{"id":3034,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3033\/revisions\/3034"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}