nothing for now...they will wait and see

GS predicting oil in the 20s as low as 20!

Despite the drop in oil prices in may places, one needs to be cautious in observing how the change will progress in time.

With the unknown conditions of the EXXON/Guyana contract for the oil to be processed in the US_of_A, one needs to see what is the bottom line for Guyana's share from oil development/production.

@Former Member

Gwana man tell yuh suh since last September. See below.
https://guyana.crowdstack.io/topic/a...4#600298945850147124

Guyana's oil may no longer be beneficial to all them waiting for "oil money".

To us in the US, look out. Low oil is good for the economy, but it's bad for these oil companies. I fear another crisis bai, oil companies folding cuz they're not able to support their high debt loads. Occidental comes to mind.

This is not ONLY wan balance sheet crisis like 2008. This is an income statement crisis too, that they really can't bail out, brought on by lower revenues. All those junk bonds and corporate credit dem gat hanging out deh might become a problem.

Stay in yuh basement and invite Granger ova. See how alyuh kyan get de aile out.

Is a recession coming?

Yes

Recession is possible but too early to tell. Depends on the progression of this virus in the US (note China's economy is already on the rebound, factories reopening etc.). I don't think what the Fed does matters at this point. If Trump launches some sort of a stimulus package that may stem off a recession. It's an election year, worse time for him to have one.

The warm weather will see a recession of the virus and by the time it reappears, there will be a vaccine.  But who knows what damage is done which could precipitate a recession.  As Gwana said, what if Trump launches a stimulus package?

@Former Member that was my point.  Who knows what Exxon will do in the face of oversupply and low prices.  The US will not let up and Russia will protect it's turf.  This means low prices!

Bush stimulus worked well. I think Trump should do a 5000 per married couple stimulus.

Any stimulus should be geared toward infrastructure to repair America's ailing infrastructure - bridges, roads, tunnels, transit, airports, 5G base stations, wind/solar etc. The democrats should be with him on that one.

They are/were. Pay attention Sir.

Dang...we actually having a conversation

Let's see if Trump will take actions against Saudi Arabia, or allow US companies to go under. No doubt he is busy working out how to blame the Democrats for the drop in oil prices.

Trump don’t give one shyte how low prices go. That’s why he is still ramping up US production.  He will probably grant some tax waiver to US oil companies to help them get through.  He sees them as part and parcel of the strategy for US oil dominance.

Guanna

Lots of stimulus packages  have been proposed. The Republicans do not seem to care to do it since it would mean borrowing. They prefer to reserve the borrowing to fund tax breaks to the wealthy. Why not give complete student loan forgiveness. It is an internal debt and do more for the lives of 45 million people immediately than tax breaks to a few billionaires. 

Exxon cannot do a damn thing. The company lost over 100 billion already.

@Former Member

I'm not in favor of tax breaks for the wealthy, they've already received those plus extremely low interest rates to borrow funds for expansion. I'm ok with a cut in payroll taxes as it gives everyone a small break.

I favor infrastructure spending as detailed in my earlier post, paid for by a small tax increase on the wealthiest in society. Buffet, Gates, Cooperman etc. are all fine with it so why shouldn't the 2 parties? Trump spoke of a billion in infrastructure spending per  year. The Dems agree. But it will not happen in an election year where each party will seek credit for it.

Not in favor of debt forgiveness for student loans. That's a runaway train. Education costs a lot in this country, more than other nations because of the fat cat professors and teachers and their unions. It's time to fund and promote more distance learning and reduce the costs of education.

Obama claimed that his stimulus is still driving American's economy? How true is that, Baseman?

Americans with over 15 Trillion in debt, think they can spend their way to prosperity. My financial Guru, estimated that one needs about $500,000 to retire comfortable. 

@Mitwah: Only if you want to live in expensive cities and luxury. If you don't owe anyone and you live simply, you don't need $500,000. Even though I have retirement funds, I live comfortably on my Social Security Benefits and still have funds to donate to a couple of my charities(Humane Society and Disable American Veterans).

@skelly, Social Security, isn't that socialism? Bhai, you gotta define luxury. We Snow Birds move down South to live in inexpensive cities like Ksaz. 

@Former Member

indeed...it's all a matter of how you live

@Mitwah:

Mits, I paid 42 years for my SS. I do not consider it socialism. I consider it an insurance plan that is now paying me. I am not a snowbird and don't mind the winter here. My wife went to FL for a month and had to re-book her return flight after 2 weeks so he can be home. She did not care for FL.
I love living in MN. It's quiet, clean and affordable. Besides cold winters, the rest of the three seasons are fabulous.

Bai Skelly, you're right. If you pay into an insurance, you should expect it to deliver at the appropriate time. We also have a similar system here in Canada. 

It has nothing to do with Socialism.

Capitalism or Socialism is not defined by having social safety nets. Obamacare was the last big social safety net instituted and it has not structurally changed the US economy or the free enterprise system.

When I came to the US I was surprised by the rights US workers had as opposed to Guyana. Burnham and Jagan fed us all sorts of shyte about capitalism, the workers had much more rights here than there.

So capitalism and socialism are not mutually exclusive. Ayuh relax and focus on democracy in Guyana.  

All Exxon need is a long hose to draw up the oil, a ship tank, a tank of ship gasoline to take the oil to storage, a ship crew to make a profit and a fool to buy the fossil fuel.  They will always make money on Guyana oil.  The crucial question is Guyana going to make a profit.