Thursday, August 6, 2015


GMO founder Grantham says markets ‘ripe for major decline’ in 2016 (LINK)
A well-known fund manager who foresaw the Japanese crash, the dotcom bubble and the global financial crisis has predicted that markets will be “ripe for a major decline” some time in 2016, potentially triggering government bankruptcies. 
Jeremy Grantham , founder and chief strategist of GMO, a $118bn investment house based in Boston, expects the stock market to continue to march higher in the coming year, eventually sucking in retail investors and setting up a serious decline around the time of the US elections in late 2016.
Saudi Arabia may go broke before the US oil industry buckles [H/T @AlexRubalcava] (LINK)
If the oil futures market is correct, Saudi Arabia will start running into trouble within two years. It will be in existential crisis by the end of the decade. 
The contract price of US crude oil for delivery in December 2020 is currently $62.05, implying a drastic change in the economic landscape for the Middle East and the petro-rentier states.
From a Million Miles Away, NASA Camera Shows Moon Crossing Face of Earth [H/T James] (LINK)

Book of the day: My Life & Work - An Autobiography of Henry Ford