economy

Daily Economy Thread

Started by Economy with 528 replies so far

Welcome to GGDs Daily Economy thread where we discuss main points going around the world

Feel free to post your own news as well in the comments for all to see!

world-economy-still-faces-various-risks-

 

CURRENT POINTS OF FOCUS:

 

Oil Price Collapse: It has been months since oil prices began their collapse in October 2014. With US shale producers more resilient than first thought and production not falling, and OPEC producers refusing to cut production to raise prices so they can retain market share, a daily over-supply of production persists which is causing oil storage hubs to get full and running out of space

 

Greece: Greece remains in turmoil over its debt crisis and the Government still does not know what to do

 

USA Rate Hikes: The US has not raised interest rates since 2005 and they are all the way down to 0%. The first rate hike coming soon will be a test of how strong and resilient the US economy really is, and whether or not it can manage higher rates. This will also force global yields higher putting the Global Economy to the test:

Edited by Economy
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Very cool. I'll be interested to how the market goes after this thing with OPEC. Will the North American oil and shale industry continue to be strong or can OPEC cripple its progress like it tried to do recently?

Pinning...


in bocca al lupo

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yeah average price of producing shale oil is like $65/barrel to $70/barrel. Of course thats an average. Varies from company to company and from field to field

Thats what prices are like so the average American company is just at break-even prices right now

Canadas oil sands are even more expensive than US shale but the drop in the Canadian Dollar is cushining some of the price drop so i dont know whos worse off right now Canada or the US

Some OPEC Nations are suffering tho and wanted higher prices. Especially Nigeria, Iran and Venezuela that are bad financially. Not every OPEC Country had massive wealth reserves like Saudi Arabia... But the Saudis carry the most influence and power in OPEC being the biggest producers :shrug:

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the greeks have tended to be over optimistic. But hopefully it happens :)

Also besides Greece Portugal is also really stabalizing.

When u consider that Ireland that was highly troubled also bounced back yet Germany is stagnating now and France is deteriorating... How is it that the small and most troubled Countries are now the most improving?

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Too bad all international funds are so weighted in Japan :messga::blehga: :wtfga:


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I have heard people commenting about gas being cheap though, it is nice.


Jane Fonda cured my vaginal arthritis | ⓜⓔⓡⓡⓨ ©ⓗⓡⓘⓢⓣⓜⓐⓢ

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The US slaying with jobs numbers and GDP growth lately :bunny:

i know!!!! the real test will be when rates go back up. can the economy handle it?

 

with the main interest rate from the Fed at 0% interest, there is a lot fo support for the economy... if rates were at a normal 3% right now the economy would implode

 

once wages start rising and business investment goes up, the economy should handle higher rates no problem

 

its important to remember that most companies that werent destroyed in the recession now have eccess capacity... as in machines and stuff they already had are capable of supplying current demand and they dont need to invest

 

only once demand and economic output surpasses the current eccess capacity and companies are gonna have to invest, a lot fo slack in the economy in theory should anticipate

 

excess capacity is a concept i often didnt pay much attention to in the past but its a significant factor in secular stagnation (stagnation that tends to follow really severe downturns that instead of getting a "V shaped cycle" get a "u shaped" cycle)

Edited by Economy

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I have heard people commenting about gas being cheap though, it is nice.

hope it doesnt kill north american oil boom :manicure:

Too bad all international funds are so weighted in Japan :messga::blehga::wtfga:

even after 25 years of pathetic economic performance ppl have faith Japan will get back up...

But i can give you 1 million reasons why Japan will never recover :coffee:

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i know!!!! the real test will be when rates go back up. can the economy handle it?

 

with the main interest rate from the Fed at 0% interest, there is a lot fo support for the economy... if rates were at a normal 3% right now the economy would implode

 

once wages start rising and business investment goes up, the economy should handle higher rates no problem

 

its important to remember that most companies that werent destroyed in the recession now have eccess capacity... as in machines and stuff they already had are capable of supplying current demand and they dont need to invest

 

only once demand and economic output surpasses the current eccess capacity and companies are gonna have to invest, a lot fo slack in the economy in theory should anticipate

 

excess capacity is a concept i often didnt pay much attention to in the past but its a significant factor in secular stagnation (stagnation that tends to follow really severe downturns that instead of getting a "V shaped cycle" get a "u shaped" cycle)

 

I think with Republicans taking control of Congress, there will also be efforts with Obama to pass more trade deals and corporate tax reform. Things that will be a boon for corporate growth and GDP growth in the coming years.

 

Elections have consequences, and a divided government can be really good for the economy when compromises are struck. Republicans are too tax cut crazy and irresponsible, Dems too spending crazed and regulation-happy. Balance is good.

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