The NIKKEI and Hang Seng are off by more than 3% tonight. Let’s be honest with one another, no other markets are credible or worthy of discussion in that God forsaken part of the world. Do we really give a shit about Singapore or the kangaroo shit shovelers in Australia?
Your game is over over, mate. The commodity boom has ended and in its place is debilitating depression, locked in through deflation. This is the sort of depression that is permanent. There isn’t a way out from it, unless of course your central banks are willing to “reset” the whole system and default on all of the debt.
I’m just gonna write until I feel better about myself, so bear with me.
During tonight’s Asian coverage on CNBC, the retarded host and guest keep pronouncing Carl Icahn’s name “iCAN”, like he’s Tim Cook’s latest gadget. Personally, I can’t wait for old man iCAN’s video tomorrow, where he intends to discuss the “great (motherfucking) catastrophe” that we’re barreling into. I love it when men worth $20 billion warn us whipper-snappers of impending doom. In no way is that man connected to reality. His life is a fiction. His legacy is priority. His words are meaningless.
Petrobras has $170 billion in debt. Anyone want to guess when they might seek bankruptcy protection? How about CHK? How is this oil and gas, levered to the hilt, credit crisis different from the 2008 housing varietal? Thanks to easy money and a high oil price, money flowed feely into the coffers of our oil and gas companies. Now that Armageddon has gripped the fucking helmets of those George Bush’s, banks and financiers are left holding the bag of shit.
Who has exposure and how much is it?
Doing some quick scans in Exodus, it is a fuckload of debt.
In the oil and gas drilling equipment space, the median debt/eq ratio is 1.83. The total debt stands at $239 billion (lolz). Companies whose debt/eq ratios are greater than 5, also known as dead men walking, total debt exposure stands at $33 billion. But that’s just one little industry. Let’s move on, shall we?
Oil and Gas equipment: $84 billion/ distressed debt, as defined by debt/eq levels above 5: $8.4 billion.
Independent oil and gas: $115 billion/ distressed $31 billion.
Oil and Gas pipelines: $257 billion (lolz)/ distressed $1.57 billion.
Refiners: $65 billion/ distressed $00.00
Major Oil: $617 billion/ distressed $00.00
Ancillary debt structures that are under pressure:
Alternative Energy: $18.6 billion/ distressed $5.1 billion
Solar: $26 billion/ distressed $3.3 billion
Industrial Metals and Minerals: $86 billion/ distressed $18.7 billion
This is a rather general analysis of the industry. I am sure the terms of much of the debt out there is flexible and long dated. Nevertheless, it’s important to note that equity markets, for all intents and purposes, are effectively shut down for all distressed energy companies.
Total publicly trade energy related debt: $1.5 trillion.
Total publicly traded energy related DISTRESSED debt: $101 billion.
Sleep tight.
Fuck this shit.
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did iCAN finally watch Ron Paul’s video? or maybe read ZH.
all the catastrophe is coming talk has isn’t exactly news.
But it’s always worth repeating.
Fed talking about raising rates js the new raising rates. David Schawel on twit has been all over this take for awhile now btw.
SO…. What you’re sayin’ is, we gotta chance?????
Glad we found water on Mars… We’re all saved 🙂 we’ll leave the hedge fund guys, all the politicians, lawyers and the douche of all douches Martin Shkreli behind!
Yeah there is water on Mars and the Pope loves abortions and wants to fight the weather with Bill Maher. Do hard drugs instead. Some benefit to it.