Credit Implosion Coming Up

A lot of leveraged drillers and crude suppliers dependent on prices above $50 will see a credit implosion.

That’s just a start.

A Supply Shock and a Demand Shock are Coming Up.

Deflationary Outcome

As noted previously, a Very Deflationary Outcome Has Begun.

Blame the Fed.

Deflation is not really about prices. It’s about the value of debt on the books of banks that cannot be paid back by zombie corporations and individuals.

See the previous link for discussion.

Mike “Mish” Shedlock