Russell Lee Front of livery stable, East Side, New York City Jan 1938 • Japan’s Economy Is Worse Than Feared (WSJ) • Japan’s Recession Deepens as Election Looms for Abe (Bloomberg) • China Trade Data Miss Forecasts By A Wide Margin (MarketWatch) • China Trade Data Paints Dreary Picture Of Economy (CNBC) • The Two Main Threats That Are Shaking Global Firms: China And Deflation (CNBC) • Oil, Gas Bloodbath Spreads to Junk Bonds, Leveraged Loans. Defaults Next (Wolf) •
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John Vachon Big Four Cafe, Cairo, Illinois May 1940 The wider impact of plummeting oil prices is just now starting to be considered. Just about all ‘experts’ are way behind the curve. There’s still people insisting it’s all be a big boon to all of our economies. Not here, as you know if you follow TheAutomaticEarth.com, or as you can find out by retracing us over the past 1-2 months. I said from the get go that this cannot end
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Arthur Rothstein Accident on US 40 between Hagerstown and Cumberland, Maryland Nov 1936 • OPEC And American Shale Keep The Oil Price Spiralling Downwards (Guardian) • Oil Poised to Extend Drop After Hitting Five-Year Low (Bloomberg) • Fossil Fuel Companies “The Sub-Prime Assets Of The Future” (Telegraph) • Osborne Oversees Biggest Fossil Fuel Boom Since North Sea Oil (Guardian) • Delinquent US Car Loans Up 27% From Last Year (NY Times) • Goldman Needs Volcker Delay to Avoid Private-Equity Losses
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Arthur Rothstein Interior of migratory fruit worker’s tent, Yakima, Washington Jul 1936 We’re in dire need of fresh blood and smart new ideas to clean up the mess the present ideologies and their puppets and puppetmasters have created. The present crew has made a neverending series of ‘mistakes’, intentional or not, and they are dead set on making more, if only because they refuse to change the tack that led to all these ‘mistakes’. I say mistakes because that’s what
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Louise Rosskam General store in Lincoln, Vermont Jul 1940 • The ‘You Want Fries With That?’ Jobs Report (CNBC) • Full-Time Jobs Down 150K, Participation Rate Stays At 35-Year Lows (Zero Hedge) • US Factory Orders Tumble, Miss By Most Since January (Zero Hedge) • The New Economics Of Oil (Economist) • More than $150 Billion of Oil Projects Face the Axe in 2015 (Reuters) • Energy Bond Crash Contagion Suggests Oil Will Stay Lower For Longer (Zero Hedge) •
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Arthur Rothstein President Roosevelt tours drought area, near Bismarck, North Dakota Aug 1936 OK, I don’t see a whole lot of comprehension out there, so let’s try and link the obvious: employment to shale to plummeting oil prices to the debt the shale industry was built on (and which is vanishing). I know, people look at the US jobs report today, and at the stock exchanges (Europe up some 2% across the board), and think salvation has landed on their
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William Henry Jackson Hand cart carry, Adirondacks, New York 1902 • This Is Oil’s ‘Minsky Moment’: Marc Chandler (CNBC) • Cheap Oil’s Economic Benefits May Be A Big Myth (MarketWatch) • Brent Drops From 4-Year Low as Saudi Discounts Deepen Price War (Bloomberg) • Oil Drop Gives U.S. Drillers Argument to End Export Ban (Bloomberg) • Canada-U.S. LNG Rivalry Draws Focus After Petronas Delay (Bloomberg) • ECB Paralyzed By Split As Irreversible Deflation Trap Draws Closer (AEP) • Greenspan Says
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Dorothea Lange Homeless mother and child walking from Phoenix to Imperial County CA Feb 1939 So, Matthew Lynn, I’m sure you’re a fine young man and your mommy loves you to bits, but you’re obviously in the wrong line of work. Or maybe the right one, come to think of it, since if you can make enough people see the world your way, in the end you’ll be right. That’s how journalism is defined these days. Anything goes, provided you
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DPC Pittsburgh by Night 1907 News reports about developments in the oil markets are coming fast and furious, and none of them indicate any stabilization, let alone rise, in oil prices. Quite the contrary. There are very large amounts of extra barrels flowing into the market, which is just, as one analyst puts it “even more oil flooding the market that nobody needs.” Saudi Arabia looks set to battle for sheer market share, even if it sends strangely contradictory messages.
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Arthur Rothstein Migratory fruit pickers’ camp in Yakima, Washington Jul 1936 • Five Reasons Why Markets Are Heading For A Crash (Telegraph) • ‘The Minsky Moment Is The Crash’ (Zero Hedge) • Global Company Bond Sales Nearing $4 Trillion Set Annual Record (Bloomberg) • Collapse Of Oil Prices Leads World Economy Into Trouble (Guardian) • Sub-$50 Oil Surfaces in North Dakota As Regional Discounts Swell (Bloomberg) • First U.S. Gas Station Drops Below $2 a Gallon (Bloomberg) • There Are
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