Oil industry lobbyists must have been working the government over for months. The price of oil has plunged nearly 60% since June. Smaller oil companies are going bankrupt. Larger ones are bleeding. Energy junk-bondholders are getting massacred. Wall Street is fretting about losing the fees. Banks are worried about their energy loans. Venezuela is falling apart and is going to default. Russia is careening in the wrong direction. Kern County, the oil capital of California, declared a “fiscal emergency.”
They all need the price of oil to jump, and they need it to jump NOW.
And besides, consumers, who’ve benefited from the low price of gasoline, don’t seem to appreciate it, at least not in the true American way, as the last retail sales reports have shown. They aren’t spending the money they’ve saved on gas. They’re supposed to spend all of it, and more than all of it in the true American spirit of living beyond your means. But instead, they’re squirreling it away to pay for surgery or college or whatever. Retail spending has been dropping. And that can’t be allowed to happen.
So on Friday evening, when consumers were busy with other things and didn’t pay attention, the government proposed that it would yank that little monthly bonus away from them and hand it straight to the fracking and off-shore drilling industry, the big oil companies, the little oil companies, their suppliers, to the PE firms that invested so heavily in fracking, to the Saudis, Russia, to the despised government of Venezuela….
Conspiracy theory?
http://wolfstreet.com/2015/03/13/us-government-bails-out-oil-industry-russia-pe-firms-the-saudis-venezuela-wall-street-but-slams-american-consumers/
They all need the price of oil to jump, and they need it to jump NOW.
And besides, consumers, who’ve benefited from the low price of gasoline, don’t seem to appreciate it, at least not in the true American way, as the last retail sales reports have shown. They aren’t spending the money they’ve saved on gas. They’re supposed to spend all of it, and more than all of it in the true American spirit of living beyond your means. But instead, they’re squirreling it away to pay for surgery or college or whatever. Retail spending has been dropping. And that can’t be allowed to happen.
So on Friday evening, when consumers were busy with other things and didn’t pay attention, the government proposed that it would yank that little monthly bonus away from them and hand it straight to the fracking and off-shore drilling industry, the big oil companies, the little oil companies, their suppliers, to the PE firms that invested so heavily in fracking, to the Saudis, Russia, to the despised government of Venezuela….
Conspiracy theory?
http://wolfstreet.com/2015/03/13/us-government-bails-out-oil-industry-russia-pe-firms-the-saudis-venezuela-wall-street-but-slams-american-consumers/
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