report released last week told us that one out of every three people on Social Security’s disability program is a mental defective. In Washington, DC, the rate of nuttiness among the disabled is even higher – 42%. No surprise there.
Since the crisis of 2008-09 about one-third of capital spending by S&P 500 companies went into energy. And as much as 20% of the high-yield market (junk) now is concentrated in the energy sector.
That boom was built on low interest rates and a high oil price. Without cheap money, cheap gas wouldn’t be possible. And when gas gets too cheap, the cheap money suddenly gets very dear.
Outside of the big oil exporting countries and the US shale-oil business this big drop in prices is widely seen as good news.
Consumers fill their tanks at lower gas prices and have a few bucks left over – money that can be used to buy things. According to the current and conventional delusions of the economic profession, this leads to sustained higher economic growth, more jobs and a cure for impotence.
The yellow metal lost nearly 1.8% of its value on Friday. And the big precious-metals miner stocks ETF, GDX, plummeted 8.7%.
Meanwhile, Thanksgiving was a success in the Bonner household. In Maryland, tobacco barns are falling down faster than World War II veterans. Your correspondent had planned to try to rescue one of them – using the strong backs of his sons, two of their friends visiting from France and our regular weekend helper, Fernando from Honduras.