The shale boom is over, but not the financial fallout. From Wolf Richter at wolfstreet.com:
Texas at the epicenter. We’re witnessing the destruction of money that loosey-goosey monetary policies encouraged.
Following the sharp re-drop in oil and natural gas prices in late 2018, bankruptcy filings in the US by already weakened exploration and production companies , oilfield services companies, and “midstream” companies (they gather, transport, process, or store oil and natural gas) jumped by 51% in 2019, to 65 filings, according to data compiled by law firm Haynes and Boone. This brought the total of the Great American Shale Oil & Gas Bust since 2015 in these three sectors to 402 bankruptcy filings.
The debt involved in these bankruptcies in 2019 doubled from 2018 to $35 billion. This pushed the total debt listed in these bankruptcy filings since 2015 to $207 billion. The chart below shows the cumulative total debt involved in these bankruptcies since 2015.
For many businesses in California, moving to Texas has become a no-brainer. From Tyler durden at zerohedge.com:
Around 700,000 people left California last year, with more than 10% moving to Texas.
According to a new report by Yardi Systems, over 86,000 people abandoned the Golden State. In terms new Texas residents overall, ex-Californians constituted around 15%, according to the Dallas Morning News.
The influx of Californians should come as no surprise, as businesses have been migrating out of the high-tax, high-crime, heavily regulated statefor cheaper pastures.
Chairman and founder Charles Schwab noted that one of the drivers behind the move from California was that “the costs of doing business here are so much higher than some other place.”
U.S.—New billboards have been popping up in California with the slogan “Move to Texas: We have electricity!” Many see this as a play to lure jobs away from California, as many jobs rely on electricity, especially in the modern economy. This could especially be attractive to jobs in the tech sector.
Roy Rivera, a tech analyst with decades of experience in cutting edge technology, explained that “a lot of tech uses electricity.” He then pointed to a chart showing that tech businesses can be at least 300% more effective when they have power.
California Governor Gavin Newsom was dismissive of Texas’s claims, though. “They’re making false claims of being able to deliver electricity 24/7,” Newsom said, “but it just can’t be done.” Newsom was also dismissive of the Lone Star State’s other claims, such as affordable housing, plenty of water, cheap gas, plastic straws, and not constantly being on fire. “It sounds made up,” said Newsom. “I don’t even think there is a Texas.”
California plans to fight back. It’s now working on a wall to keep people and jobs from leaving California. The planned wall should extend along the entire California border, except for the southern part.
Yes, and the reason stupid kids get bad grades is because there are smart kids in the class. From Mac Slavo at shtfplan.com:
California’s authoritarian governor, Gavin Newsom, blamed the state of Texas for California’s homeless crisis. Rather than put the blame directly on the policies California has instituted that stifle free enterprise and punish heavily those who produce, Newsom said it’s the fault of Texas.
Former California assemblyman turned Texas resident Chuck DeVore reacted to Newsom pushing the blame onto others. The vice president of the Texas Public Policy Foundation, Chuck DeVore, said Wednesday that Gavin Newsom is “responsible for the policies that have created California’s homeless crisis,” in the wake of the governor blaming Texas for San Francisco’s homeless crisis. “What you’re seeing here are the words of a desperate man that we should almost feel sorry for,” DeVore, who served as a California assemblyman for six years, told “Fox & Friends.”
“Governor Gavin Newsom has been in office now for 22 straight years, starting at the San Francisco board of supervisors,” DeVore added. Homelessness has been rampant across the state of California in the past few years and merchants and homeowners have become increasingly vocal and incredibly irate at how things are going in the socialist dystopia.
This is a fine example of a dying art: real journalism. Edgar Walters and Jolie Mccullough have written an in-depth story about civil asset forfeiture. It’s clear where their sympathies lie. However, they also give due account to the other side and let readers make up their own minds. From Walters and Mccullough at the Texas Tribune via theantimedia.org:
In February 2016, prosecutors in Houston filed a lawsuit against a truck: State of Texas vs. One 2003 Chevrolet Silverado.
Houston police had seized the vehicle after surveilling its driver, Macario Hernandez, and pulling him over after he left his house. They took the truck to court, hoping to keep it or sell it at auction to fund their operations, claiming the vehicle was known to be involved in the drug trade.
But the truck’s owner, Oralia Rodriguez, was never charged with a crime. She wasn’t at the scene when officers pulled over Hernandez, her son, and found 13.5 grams of marijuana in his pocket. In fact, Rodriguez said she had recently loaned him the car so he could drive his pregnant girlfriend to the doctor. The girlfriend was having difficulty with her pregnancy and was at risk of losing the baby, Rodriguez said. She was desperate not to lose her truck, which had recently had new tires installed among other repairs, which she was still working to pay off.
“My sole intention was to help out. … Now I am in this situation of losing what I have worked very hard for,” she wrote to local prosecutors. “I am begging you please allow me to have my truck back.”
Much of what TV newscasters read as news is actually editorializing. From Eric Peters at theburningplatform.com:
Listen to this lead-in by a CNN Tele-Prompter readerabout a federal judge in Texas ruling that the Affordable Care Act’s mandate to buy health insurance is unconstitutional:
“The law that brought health care to millions of Americans has been struck down by a federal judge.”
First words out of his mouth.
That’s what they used to call editorializing – as opposed to the statement of fact without the color of opinion you read just above it, in the lead to this story – about the same subject.
The Tele-Prompter reader leaves no doubt as to his view about both the Texas judge’s ruling and the Affordable Care Act, which is annoying right out of the gate because who cares what this Tele-Prompter reader’s opinions are about anything? It’s one thing to listen to a veteran newsman who’s earned some bona fides offer up his slant on an issue, especially if it’s something he’s been covering for decades and maybe thus the man has something to say that’s worth listening to.
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