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Morning sports fans,

beach oil

Wall Street finally caught the disease..oil continues to plummet as the Saudis turn the screw and discount prices to Asia and Europe…this could get ugly…if the price stays this low for some time then all bets are off…there are two looming issues..the unravelling of the US Shale boom and the Unravelling of OPEC country economies…

First up, in the Shale business it is necessary to keep on drilling more and more holes as the production rates dry up pretty quickly..to finance said holes the oil companies have to raise lots of money..lots and lots of it..this is in the form of some dubious instruments and unfortunately when the oil price collapses so does the potential funding arrangements..they could unravel quiet quickly..there is also the fact that a huge swathe of the new jobs in the US have been created due to the oil industry..if it slows and it will, the jobs will disappear..slowing the US economy..just as the Fed is looking to sneak out the back Jack, they have a new plan Stan to set themselves free..

The second issue is the OPEC countries…they pump oil and with the revenue keep their downtrodden citizens happy with fast cars and 7 star resorts…plus lots of other goodies…as their revenue collapses so does their social bribery programs and potential political unrest and let’s not get started on Russia…

Meanwhile through all this the Chinese are happily building storage tanks and building their strategic stockpiles…could be the smarty pants in all this..

Another down day yesterday …some commentators, like my good friend Mike McCarthy at CMC, were calling it a good performance and an inside out day as we rallied off a 60 point drop…twaddle…after dropping 80 we needed something from Tuesday..we are heading for 5000…the MYEFO will be the nail in the consumer confidence coffin…Canberra has made a complete joke of itself and the good old taxpayer is pretty fed up with weasel words, backflips, broken promises, no vision, job losses, falling incomes, rising house prices so no one except ‘Investors’ can afford to live anywhere, food and energy prices going up but hey at least they have stopped the boats…actually not sure they have stopped them ..more like it’s not worth coming anymore…

The long awaited transition from mining boom to whatever comes next is not happening…there is no vision for a clever country just big Tonka toys digging black nd re3d stuff out of the ground!!!Not gonna cut it..

Idea of the Day…Now?Now? Nah not yet my fine feathered friend!

 

Now I know it’s tempting to want to bottom pick..but there is an old Chines proverb about bottom picking and fingers…resist the temptation to buy the oils yet..if you want to see the roadmap when good commodities turn bad..look at how the golds have collapsed…this is a rerun…the fallout will take some time to steamroll its way through..BHP will continue to head lower and their whole Petrohawk purchase is looking a bit iffy…should be able to pop it into badco..or South 32 as they have named it…do you reckon they paid someone to come up with that name..god help shareholders!!!

Things to make you go mmmmmm!!!

 

Australian unemployment data for November will be released at 11.30am this morning. Net job growth is expected to increase 15k, down from the 24.1k pace of October, with unemployment tipped to rise 0.1% to 6.3%.

Looks like the US has reached a deal on its funding programs for 2015…

And this is brilliant from the knuckleheads in Zombieland.. The 2015 budget includes €8bn to launch a €315bn investment plan announced by Commission president Jean-Claude Juncker. Most of that €315bn will be in the form of loan guarantees or private investment…….so they are trying to make 8 Bn Euros into 315bn Euros…abracadabra!!!They have identified 2000 infrastructure projects… the whole Euro Experiment is doomed to failure they are completely deluded and in it for the Brussels salaries and perks..fat cats lining their own pockets.

Talking of corruption and greed…the two Aussie bankers that are up for insider trading using ABS numbers  and buying the block…lovely blokes…pretty brave using ABS stats to inside trafe FX markets…could do anything…pretty silly buying a flat in the Block!!!Greed and corruption..

Gotta love Pyne writing to Phoney Tony about cuts to the Adelaide ABC!!!Nice backflip on climate change fund as well..but just reallocating old money from foreign aid program..not really the same..

Another director at Vocation has left the building…last one out turn off the lights…won’t be long now…CFO gone too..Chairman last week..

This one never ceases to amaze me..a whole chain of shops selling vacuum cleaners backed up with tacky adverts..but I eats my hat as this one listed yesterday and started life at a premium..really yeah I know could have vacuumed me down with a feather!!

Oscar Pistorius has been put back in the spotlight as the appeal against his sentence has been allowed as being too lenient..

Even the BBC news service in London is talking how incompetent our current batch of Muppets are…really not helping sentiment…

This is just plain weird or really worrying…

 

“The Department of Treasury is seeking to order survival kits for all of its employees who oversee the federal banking system, according to a new solicitation.

The emergency supplies would be for every employee at the Office of the Comptroller of the Currency (OCC), which conducts on-site reviews of banks throughout the country. The survival kit includes everything from water purification tablets to solar blankets.

The government is willing to spend up to $200,000 on the kits, according to the solicitation released on Dec. 4.”

 

Russians are really feeling the pinch.should never peg hookers to the dollar….in the Urals sex workers have raised their prices by between 50-100%!!!!Falling Rubble and the influx of cheap Ukrainian sex workers taking its toll..Russia has 1m sex workers!!

hookwers

Airline stocks are trading higher after IATA said the airline industry profit in 2015 would be $25 billion compared to $19.9 billion in 2014.

And finally…..

 

A young jackaroo from outback Queensland goes off to university, but halfway through the semester he has squandered all of his  money.

He calls  home.

‘Dad,’  he says,  ‘you  won’t believe what modern education is developing … they actually have a program here in Brisbane that will teach our dog Ol’ Blue how to talk.’

‘That’s  amazing!’ his  Dad says. ‘How do I get Ol’ Blue in that program?’

‘Just  send him down here with $2,000,’ the young jackaroo says, ‘I’ll  get him in the course.’

So  his father sends the dog and $2,000.

About two-thirds through  the semester, the money again runs out. The boy calls home.

‘So  how’s Ol’ Blue doing, son?’ his  father wants to know.

‘Awesome!  Dad, he’s talking up a storm.. But you just won’t believe this.  They’ve  had such good results with talking, they’ve begun to teach the  animals how to read.’

‘Read?’  exclaims his father. ‘No  kidding! How do we get Ol’ Blue in that program?’

‘Just  send $4,500. I’ll get him in the class.’

The money promptly arrives. But our hero has a problem. At the end of the year, his father will find out the dog can neither talk nor read.

So he shoots the dog. When he arrives home at the end  of the year, his father is all excited.

‘Where’s  Ol’ Blue? I just can’t wait to talk with him, and see him read something!’

‘Dad,’  the boy  says, ‘I  have some grim news.  Yesterday morning, just before we left to drive home, Ol’ Blue was in the living room, kicked back in the recliner, reading the Wall Street Journal.

Then he suddenly turned to me and asked, ‘So, is your old man still bonking that little redhead barmaid at the pub?”

The  father groans and whispers, ‘I  hope you shot that bastard before he talks to your Mother!’

‘I sure did, Dad!’

‘That’s my boy!’

Have a great day

Clarence

XXX

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