')Ummm....
Maybe I spoke too soon:
PeakOil is You
I have a bad feeling about this week.
Re: I have a bad feeling about this week.
by Lore » Tue 31 Jul 2007, 09:53:50
$this->bbcode_second_pass_quote('Zardoz', '
')Ummm....
Maybe I spoke too soon:
')Ummm....
Maybe I spoke too soon:
All the news channels have been prepping people for $80 - $85. As long as it keeps easing up slowly, without a sudden shock, the public will continue to absorb the cost as they have, rather then change their habits. That is until it hits a level where it really cuts deep into disposable income.
Already, regardless of the good 3.4% GDP growth in the 2Q, one aspect they have downplayed is the anemic consumer spending figure.
As I've mentioned else ware, look to the consumer to stop the economy cold, not market hiccups. Inflation is yet the other leg that has to kick in.
U.S. June Consumer Spending Up 0.1%, Inflation Cools
$this->bbcode_second_pass_quote('', 'J')uly 31 (Bloomberg) -- Consumer spending in the U.S. increased in June at the slowest pace in nine months as near- record gasoline prices and falling home values forced Americans to cut back.
The 0.1 percent rise in spending followed a 0.6 percent increase in May, the Commerce Department said today in Washington. The increase matched the median forecast of economists surveyed by Bloomberg News. The Federal Reserve's preferred measure of inflation rose less than forecast.
LINK
The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
... Theodore Roosevelt
... Theodore Roosevelt
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Lore - Fission
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Re: I have a bad feeling about this week.
by Zardoz » Tue 31 Jul 2007, 11:18:35
"Thank you for attending the oil age. We're going to scrape what we can out of these tar pits in Alberta and then shut down the machines and turn out the lights. Goodnight." - seldom_seen
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Zardoz - Expert
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Re: I have a bad feeling about this week.
by firestarter » Tue 31 Jul 2007, 11:24:41
$this->bbcode_second_pass_quote('', 'L')enders mull pulling out of TXU and pay 1 bln usd break-up fee
LONDON (Thomson Financial) - Banks led by Citigroup are considering whether they should offer to pay a 1 bln usd break-up fee in order to get the buyout bidders for Dallas-based energy company TXU to break the agreement, according to sources.
The lenders are trying to avoid being stuck with 37.2 bln usd in committed debt to fund the purchase of TXU. The lead arrangers for the debt are understood to be Citigroup Inc., Lehman Brothers, JP Morgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley.
Earlier this year, a buyout consortium of Kohlberg Kravis Roberts (KKR), Texas Pacific Group (TPG) and Goldman Sachs's private equity group had agreed to acquire TXU for 45 bln usd. The financing comprised 25.9 bln usd of term loans and 11.3 bln usd in an unsecured bridge loan.
The lenders' considerations come in the wake of a growing panic over an estimated 300 bln usd of total debt for buyouts that still need to be funded, including that of Colorado-based credit-card processor First Data Corp.
One observer pointed out that the break-up fee would be cheaper than the current losses of up to 10 pct on traded loans and bonds for recent buyouts.
Alexander.Wessendorff@thomson.com
LONDON (Thomson Financial) - Banks led by Citigroup are considering whether they should offer to pay a 1 bln usd break-up fee in order to get the buyout bidders for Dallas-based energy company TXU to break the agreement, according to sources.
The lenders are trying to avoid being stuck with 37.2 bln usd in committed debt to fund the purchase of TXU. The lead arrangers for the debt are understood to be Citigroup Inc., Lehman Brothers, JP Morgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley.
Earlier this year, a buyout consortium of Kohlberg Kravis Roberts (KKR), Texas Pacific Group (TPG) and Goldman Sachs's private equity group had agreed to acquire TXU for 45 bln usd. The financing comprised 25.9 bln usd of term loans and 11.3 bln usd in an unsecured bridge loan.
The lenders' considerations come in the wake of a growing panic over an estimated 300 bln usd of total debt for buyouts that still need to be funded, including that of Colorado-based credit-card processor First Data Corp.
One observer pointed out that the break-up fee would be cheaper than the current losses of up to 10 pct on traded loans and bonds for recent buyouts.
Alexander.Wessendorff@thomson.com
This is the kind of financial bomb that can deep six markets instantly. Think about it. They're possibly going to leave a billion bucks on the table and walk a way from the deal!!!!
This is a credit bomb, should it detonate, that will absolutely shake the financial world. TXU's deal was the headliner that got a lot of this irrational exuberance going last winter.
Told you the week was young.
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Re: I have a bad feeling about this week.
by firestarter » Tue 31 Jul 2007, 11:31:07
Looks like today's rally is losing steam fast. Wonder what happened? Read the above post for guidance.
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firestarter - Heavy Crude
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Re: I have a bad feeling about this week.
by Zardoz » Tue 31 Jul 2007, 14:35:06
Safe bet:
N.Y. Oil Surges Above $78 as Speculators Bet on Higher Prices
$this->bbcode_second_pass_quote('', 'C')rude oil rose above $78 a barrel in New York, nearing a record, on speculation demand will outpace supply as refiners increase fuel production in preparation for the winter.
Bets on rising prices by hedge funds and other speculators rose to a record earlier this month, according to U.S. Commodity Futures Trading Commission data. World demand climbs to an annual peak as refineries begin to make fuels for use in the fall and winter. A government report tomorrow may show U.S. oil supplies fell for a fourth week, according to a Bloomberg News survey.
N.Y. Oil Surges Above $78 as Speculators Bet on Higher Prices
$this->bbcode_second_pass_quote('', 'C')rude oil rose above $78 a barrel in New York, nearing a record, on speculation demand will outpace supply as refiners increase fuel production in preparation for the winter.
Bets on rising prices by hedge funds and other speculators rose to a record earlier this month, according to U.S. Commodity Futures Trading Commission data. World demand climbs to an annual peak as refineries begin to make fuels for use in the fall and winter. A government report tomorrow may show U.S. oil supplies fell for a fourth week, according to a Bloomberg News survey.
So, if the report does show that tomorrow, what kind of a price jump might we see?
"Thank you for attending the oil age. We're going to scrape what we can out of these tar pits in Alberta and then shut down the machines and turn out the lights. Goodnight." - seldom_seen
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