Contracting economy, falling currency, bank stocks diving - it's all there. Ima waiting for them to dump their US treasury bills & bonds, myself...
Following Obama's 9/11 bill veto defeat yesterday, and despite a surge in oil prices after a 'deal' was struck by OPEC, Saudi Arabia's markets are signaling panic in The Kingdom. Currency forwards are collapsing, default risk is jumping, and bank stocks are hitting record lows...
Mint's Bill Blain, in his Morning Porridge noted that last nights "surprise" OPEC agreement to agree to agree about talks on cutting oil production is fascinating. Not from the likelihood it may not ever happen, (the earliest we will know is the Vienna meeting in November), but what it tells us about how the sands are shifting around Saudi Arabia. Deliberate Saudi over-production caused the oil glut and was a policy designed to take out expensive US producers. Voodoo economics didn’t work ‐ US producers cut and adapted, and the rest of the world hasn’t played along.
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