Bubble

News!

Why The Coming Oil Crunch Will Shock The World

It’s so powerfully embedded that Ford Motor Company recently decided to scrap selling sedans and small cars in America. It will only manufacture SUVs, trucks and commercial vehicles. You know when Ford will no longer make cars, they've got to have really chugged the shale oil Kool-Aid to make that decision. 

Concrete is still poured with steel rebar every day. New homes and commercial buildings are built with expected lifetimes of only several decades and little attention to insulation. And the Federal Reserve focuses with manic precision on assuring that the credit markets continue to grow exponentially. 

Each of these and a million other activities consumes finite, irreplaceable energy at the expense of a sustainable future. At some point, perhaps already passed us, that goal becomes no longer possible.

My point is we don’t know where that line in the sand is. We haven’t done the work, made the plans, and performed the necessary visioning to know one way or the other. 

None of us know what will finally break the largest and most destructive credit cycle ever unleashed on the world (thanks central banks!) but we all know that The Everything Bubble has a bitter end. 

All self-destructive delusions do.

Bernstein: Oil May Jump Past $150 On Chronic Under investment

A supply shortfall is lurking should major oil companies continue to underinvest in exploring for new oil reserves, and this “chronic underinvestment” is setting the stage for the next super-cycle that could see oil prices soar to $150 a barrel or more, analysts at Sanford C. Bernstein & Co said on Friday. 

“If oil demand continues to grow to 2030 and beyond, the strategy of returning cash to shareholders and underinvesting in reserves will only turn out to sow the seeds of the next super-cycle,” said Bernstein. 

“Companies which have barrels in the ground to produce, or the services to extract them, will be the ones to own and those who do not will be left behind.”

Ford, in push to profitability, nearly abandons sedan market its Model T created

The Model T, the '32 deuce coupe, the Thunderbird, the Mustang: for much of its 115-year history, Ford Motor Co. has been synonymous with cars. 

But now Ford, one of the great engines of 20th century American industry, is about to do the unthinkable: abandon the American car business almost entirely. 

Just two years from now, a mere 10% of the vehicles rolling off Ford assembly lines and into North American showrooms will be sedans and sports cars like the Taurus or Mustang. The rest will be pickups, SUVs and commercial vehicles — more lucrative models that the company hopes will secure its future as change tears through the global auto industry.

DYI