Price of oil is falling. Stocks are down worldwide.
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Supposedly the Sun has a 28 year cycle. Could this be related? Until a couple of days ago, the DJI had almost tripled in value since the recent low of March, 2009. Analysts have been saying this was bubble was going to burst since at least last year. It just took something to trigger the panic. Enter China. This is a double whammy because China is affecting both financial markets and crude futures. And now it looks like it is all because they cooked their books. At the end of the day, peoples' greed has made a few rich and many more suffer. Everyone, including service companies drilling and fracing shale oil, was in it for the quick buck. The wealthy whose fortunes have been diminished have only lost money on paper. It was never real.
Do you know the one difference between 1986 and today? The internet. Nothing else is any different. You just know more about it today because you can surround yourself with it 24/7. In 1986 you just wispered among your cubicle mates and nobody had a clue what was really going on. The following is from Wikipedia for Black Monday 1987: In late 1985 and early 1986, the United States economy began shifting from a rapidly growing recovery from the early 1980s recession to a slower growing expansion, which resulted in a brief "soft landing" period as the economy slowed and inflation dropped. The stock market advanced significantly, with the Dow peaking in August 1987 at 2,722 points, or 44% over the previous year's closing of 1,895 points. Further financial uncertainty may have resulted from the collapse of OPEC in early 1986, which led to crude oil price decreasing by more than 50% by mid-1986. (Any of this look familiar?)
Ask not for whom the bell tolls. It tolls for thee.
Men we have drilled our selves out of a job.
The sky isn't falling. I was hoping for three more years before this bust. Damn shale oil. Best of luck to all.
Black Monday meltdown.
This just a rehearsal for a much bigger one occurring in September.
Here is a good read. He didn't predict the shale oil boom though. http://www.brookings.edu/~/media/Projects/BPEA/1986-2/1986b_bpea_gately_adelman_griffin.PDF
I was working for Oil Dynamics back in 1986. For those of you too young to remember, just google 1986 oil slump. This isn't the first time.