Redefining a Bust
If you'd told me two years ago that we'd see oil companies laying off employees and laying down rigs while crude prices remained north of $60 per barrel, I'd have laughed hysterically and responded with something like, "yeah, and Joe Biden will be a heartbeat away from the presidency."
Unfortunately, the reality is that's precisely what's now happening. It's hard not to fault short-sighted and overreaching management, but at the same time, I doubt there were very many shareholders who weren't pushing for "pedal-to-the-metal" expansion back when prices were heading for $150.
As is usually the case, the employees are stuck in the cross hairs. The silver lining, such as it is, is that there are still enough opportunities with companies who were more circumspect in their exuberance that many of those laid-off workers should quickly find other jobs. That's the difference between this "bust" and the ones that happen around the $10/barrel level.
The fear, of course, is that the canary has just died.
actually, i believe that others beside santayana said "those who cannot remember the past are condemned to repeat it." first one i recall was benjamin franklin. another was arnold toynbee (might have been quoting another). and it probably has been said many times before. still is very true. seems like we never learn though.
Posted by: anonymuss at November 11, 2008 06:14 PMWhat we are seeing that venture capital is readily available for wind farms and solar, but oil, gas, and nuclear are in the poison class for Wall Street.
Change? No, we don't see it anytime soon.
Posted by: CEO at November 11, 2008 06:35 PMAbout the publisher
Random Abbye photos...
Angry Clouds
I am Curious Llama
Ganglia & Brain Cloud
Cabeza del Diablo
Aurora Moreorless
Be careful Who you plagiarize
Coming Attractions
All Thorns, All the Time
Hitchin' a Ride
"...the flower fades..."
Finding meaning in random events
Random Thursday: The Thanksgiving Edition
A Matter of Perception
Reason #21 to wear shoes in West Texas
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Jeez, the fallout is going to be a real mess!
There's been far too many people living far, far beyond their means (or ANY reasonable means) as a result of the happy, happy boom times. I look for a lot of the neighborhoods of McMansions that have been springing up to become miniature ghost towns.
Sad that so many people either weren't here for, or weren't paying attention to the bust in the 80s. Ah, but as George Santayana said, "Those
Posted by: Rob O. at November 11, 2008 09:35 AMwho cannot remember the past are condemned to repeat it."