“Massive Correction” In Energy Stocks Coming; Why The US Won’t Bail Out Its Oil Industry

Thursday, December 11, 2014
By Paul Martin

by Tyler Durden

Having predicted oil prices below $80 in 2014 at the beginning of the year, Saxobank’s Steen Jakobsen has a leg or two to stand on when he warns of a “massive correction” in energy stocks andthe drop in prices will rapidly become a headwind for the US economy, adding that “it will subtract 0.5% from GDP, bare minimum.” He further notes that due to the strategic importance of the oil industry to America, he suspects the government will attempt (a likely highly unpopular) bailout of the Shale sector. However, as Raul Ilargi Meijer notes, there is a problem for any bailout (aside from public angst), in that bailing out US oil also means bailing out Russian, Libyan, Venezuelan oil…And that would be hard to defend in today’s American political climate, helping Putin and Maduro get back on their feet.

The Rest…HERE

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