Monthly Archives: December 2014

Geld Zug: OIL GOES BACK TO THE FUTURE

OIL GOES BACK TO THE FUTURE The collapse in oil prices is positive for most of the world, but will cause recessions in several oil producing countries and defaults in many US oil company bonds. Specifically: Defaults on sovereign debt will be painful for bondholders but not big enough to shake global credit markets. Defaults on junk bonds issued by US high-cost oil producers may trigger a global slide in junk bonds, and US banks with large loans to oil producers will need Federal assistance. Lower oil prices are a net positive for most of the world (e.g. the US, [...]

2014-12-14T09:46:21+00:00December 14th, 2014|