Saturday, April 25, 2015

This June

This June both the Fed and the OPEC meet to discuss policy changes.  The Fed will announce its highly anticipated interest rate increase. How that may occur and how steep it may be is not going to be well understood right away. Though, the Fed could pullback some of its repos.

My experience as an adult tells me that the Fed is certain what actions it will take but uncertain how they will affect the economy.  My childhood experiences tell me that the Fed just doesn't understand me or the economy, and hates us both.  I wonder if both could be right.  I imagine OPEC will simply stick to its "no cuts" strategy - which seems to be effective in maintaining market share.

Thursday, April 9, 2015

How The Mighty Are Falling...Or Not

Well, this wasn't supposed to happen, or maybe it was. I can never quite figure our these private equity firms - KKR would be a good example.

Shale Producer Samson Says Bankruptcy May Be Best Option

Samson Resources Corp., an oil and natural gas producer controlled by private equity giant KKR & Co., warned investors that bankruptcy may be its best option as collapsing crude prices erode its ability to repay debt. 
Filing for Chapter 11 protection “may provide the most expeditious manner in which to effect a capital structure solution,” the Tulsa, Oklahoma-based company said Tuesday in its annual report. 
Samson told investors it’s at risk of defaulting on its debts, saying its financial condition raises “substantial doubt” that it can continue as a going concern, according to the filing. 
Other producers including Dune Energy Inc., BPZ Resources Inc. and Quicksilver Resources Inc. have also sought bankruptcy protection as a rapid decline in oil prices has led banks to rein in lending, drying up cash for drilling across North America.