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  • Potential Peril For Chesapeake Shorts  [View article]
    CHK needs to become profitable in order to pay back debt. The past formula of putting 8 million into a hole to get 6 million back is not going to work. They need to figure out how to put 6 million into a hole to get 8 million back. They simply have to stop doing what does not work. If I was CHK I would give the bondholders the leased land they can't sell. For the stockholders, maybe the middle finger will do.
    Feb 11, 2016. 04:55 AM | Likes Like |Link to Comment
  • We Should All Be Concerned About The Next Housing Crisis  [View article]
    I tried to get into an apartment for $800 a month that borders my land but was turned down because I had too many assets to qualify for rental assistance. My city has built a number of apartments for poor people who qualify for rental assistance. There is a slug of houses on the market with no takers. I did buy one of those on 2 acres with nine rooms, 2 septics, well, 9 rooms for $25,000. The problem here like so many other places is that people are losing jobs, so they move to where they can get a job, but everything is way higher priced. The problem with a home is that you can't take it with you when you move. I don't see why we can't do what the Indians did. They did move their homes. I am seriously thinking about living out in the open on my 170 acres.
    Feb 10, 2016. 11:31 PM | Likes Like |Link to Comment
  • Chesapeake Energy: The Next Domino To Fall?  [View article]
    I am missing something here. CHK has for years spend on average 8 million of other people's money to get back 6 million for every hole it drilled. This simply can't go on forever. There has to come a day of reckoning. I love spending other people's money. I hate paying it back. It is no fun paying it back when you can't. CHK is still a real estate leased land entity with reserves that are presently not worth anything.

    If I was managing CHK, I would do a 20 for 1 reverse split and then issue new stock to pay off the bond holders at a reduced price. Get the debt down so it can be become profitable.
    Feb 8, 2016. 11:27 PM | Likes Like |Link to Comment
  • Chesapeake Energy says it has no plans to pursue bankruptcy  [View news story]
    This is crazy. CHK keeps putting 8 million in holes to make 6 million. At some point this has to stop. Most of their leases aren't worth the words written on them. The worst part is yet to come. By screwing SWN, CHK screwed itself. Before this is all over they have to buy that mess back. SWN has shut down a lot of that production that CHK is still obligated to produce.

    I agree that CHK is not looking at bankruptcy, but bankruptcy is looking for CHK. What a switch.
    Feb 8, 2016. 12:11 PM | 1 Like Like |Link to Comment
  • Chesapeake Energy: The Next Domino To Fall?  [View article]
    The way I see it CHK was for many years very happy to spend 8 million of your dollars to make 6 million. I am unwilling to do that with my own money. Fracking has existed in oil since 1949, it's economics were made possible by ZIRP compounded by QE. To me CHK needs more 8 million of your dollars to make 6 million on each new well to be drilled. If only CHK could write off debt owed like it is writing off the value of leases. To me CHK is following the same road as SDOC.
    Feb 7, 2016. 10:18 AM | 3 Likes Like |Link to Comment
  • Do Walmart, Macy's Store Closings Spell Trouble For Retail Landlords?  [View article]
    The real reason WalMart express stores are closing is because according to WalMart is because the express stores took business from the big WalMart stores. I agree with that conclusion. I went to the WalMart express store only because it was much closer, thus the bigger WalMart store lost my business. Why should I drive further for the same store if I didn't have to.
    Jan 21, 2016. 10:59 PM | Likes Like |Link to Comment
  • So The Fed Raised Rates...Now What?  [View article]
    The world is being reduced to a state of barter. That is the way it should be. Each trade what they produce for what they don't. The best way for a country to get out of debt that can't be paid is for that debt to become worthless. The sooner the better.
    Jan 19, 2016. 04:44 PM | Likes Like |Link to Comment
  • So The Fed Raised Rates...Now What?  [View article]
    The Fed needs to realize that they have to normalize the interest rates to save not only the US economy but also the world economy. If they don't the growing red debt hole will suck the economy dry. It is only a matter of time before people all over the world will be forced to buy tangibles that they can use and need for money instead of the fiat frauds. If that happens all debt will become worthless. Sooner the better.
    Jan 18, 2016. 10:08 AM | 1 Like Like |Link to Comment
  • OPEC Is Cannibalizing Itself  [View article]
    @Bronco Fan - They are increasing the rig count because they don't have spare capacity. The biggest problem they have with the increased pumping pace is ever more water is seeping in. Saudi Arabia wants to increase its refining and chemical business. To get those businesses off the ground it needs cheap oil to feed those businesses.
    Jan 12, 2016. 07:17 AM | Likes Like |Link to Comment
  • OPEC Is Cannibalizing Itself  [View article]
    @Hungryforknowledge = A few months ago the Saudi oil minister said that Saudi Arabia will cut production enough to raise the oil price to $65 and 3 weeks ago he lowered that to $50.

    @dar43054 = The Saudis have had a deal to turn US$s to gold since Nixon removed the gold backing of the US$. Obama sweetened that pot of gold for half priced oil for half priced gold and is carrying out that deal through the Exchange Stabilization Fund within the Treasury. It won't be long now before Obama makes his last State of the Union Speech. Obama wants Iranian oil to compete with Saudi oil. Obama wants to remove the sanctions on Iran to make this possible. Obama wants the same deal the Saudis have be applied to Iran also. This will come out on his last State of the Union speech. He won't bring out the half priced oil for half priced gold deal directly, but on the US Treasury website you can find out just how much US Treasury gold went to Saudi Arabia. It is a hell of a big pile. The Saudi's are using a good part of that pile to pay for the weapons we produce for them. It is kind of a two way street. Thus the Exchange Stabilization Fund within the Treasury is getting some of that gold back.
    Jan 12, 2016. 12:10 AM | 1 Like Like |Link to Comment
  • OPEC Is Cannibalizing Itself  [View article]
    Obama made a deal with the Saudis for half priced oil for half priced oil when both gold and oil were much higher. The idea being to hurt Russia over the Ukraine problem. Since then both oil and gold have dropped. At the time Obama had no idea just how bad this was going to hurt shale producers in the USA. The Saudis want to knock the shale producers out. They are determined to succeed. Their plan is to cut back on production in spring enough to let oil reach $50 by next summer. They feel that is low enough of an oil price to keep shale from producing at a profit. They feel by holding at that price for a few years, most shale producers will go under. I feel their plan is going to work.
    Jan 11, 2016. 07:28 PM | 4 Likes Like |Link to Comment
  • Revaluing Chesapeake After The Impairment Hint And The Bond Exchange  [View article]
    CHK should divide the company into two units. One unit should consist of what is drilled and capped along with what is in production. The other unit should consist of just leases on land, be it proven and unproven. I already know CHK has everything for sale, even the collateral for debt properties. If such property could be sold for the debt owed for the collateral given, I don't see why it should not be sold. The biggest problem CHK has is that it has massive amounts of not accounted for work commitments (IOUs). CHK has never really made a real profit, and it does not look like it ever will either. There is a lot of differences between bookkeeping entries and what is really going on. CHK screwed over SWN big time and that screwing is coming back to hurt CHK for at least a half a billion dollars a year. Should SWN go down, which in my opinion is very possible it will hurt CHK. When it comes right down to it, the name CHK in not only in the toilet, it is in the septic tank. There is no bid on at least half of their assets, and for the other half, the bid id so low that it can't afford to sell. To me CHK is more of a real estate property (as in leases) then a energy producer. It simply can't make any money as a producer. There simply is way too much overhead.
    Jan 5, 2016. 11:35 PM | Likes Like |Link to Comment
  • The Game Changer: Saudi Arabia And Oil  [View article]
    Oil has become a weapon for the US to attack Russia. Obama made a deal with the Saudis for 1/2 priced oil for 1/2 priced gold at a time when both were much higher. In reality The Saudis are now being paid full price for their oil. Obama is trying to do what Reagan did to Russia. He is trying to bankrupt them. Will it work? We will soon see.

    What has surprised me is Russia's ability to counter our attack. It has forced them to open their markets to real reform. It has forced them to become a lot more self sufficient. It has forced them to learn how to better live off the land. And it has forced them to find different trading partners in China, India, Iran, etc.

    As for Saudi Arabia, they are borrowing a lot of money to increase their own refining capacity, to increase the production of plastics and manufacturing of fertilizers within their own country. And above all Saudi Arabia wants to establish its own shale gas production. They know shale gas is the fuel of the future for the production of electricity. So far they have been forced to burn off the gas. They know they are sitting on much larger gas reserves then we are. So are countries like China and Argentina. They just don't have the know how to establish those reserves. Saudis own a good part of the entire OPEC production. They are not going to let the USA and Russia destroy that investment. Obama thinks Saudis are on his side. He is in for a rude awakening as his term in office comes to an end. The Saudis are going to bankrupt most of our shale producers and then buy them out indirectly. All one has to look at the ownership interests the Saudis have in the big multinational energy companies. If I was CHK I would be sucking up to the Saudis big time, because no matter what they do, they will be owning them one way or another through the their ownership control of the majors.

    As I see it it is only a matter of time before companies like CHK, SWN, UPL and many others will be trading for less then a $1 a share, and then will be merged into much bigger units like Exxon or whatever. The reason I am using Exxon is because they want the production of natural gas be reduced in the hopes that that will increase the price of oil. They see natural gas as an enemy of the oil market. I think Obama screwed up, and now can't find a way out of the deal he made with the Saudis. It is not like he can make that deal public without hurting his remaining days of his term in office.
    Jan 1, 2016. 08:59 AM | 8 Likes Like |Link to Comment
  • U.S. Household Assets Are $100 Trillion  [View article]
    The problem with the Fed's figures is that it represents paper wealth. I used to farm before I retired. According to the bankers, my farm was always worth more then what the cash flow could support in debt payments. In many states along both oceans, there is a lot of housing that have the very same problem. For a long time shale oil and gas producers had no trouble getting borrowed money to drive holes into the ground in search of oil or gas assets that had some value when oil and gas were much higher but now are worthless because prices are so low. Most of that debt is now trading at half of face value. A few years ago when cattle prices were high, even a snake could get money to buy cattle with from banks. Now that is changing.

    The problem is that the banking system operates on a fractional reserve system where most of the money in circulation does not circulate. Debits and credits are no longer equal. There is way more debits floating as currency then there is credits. For the system to work like it should the debits can't exceed credits. They have to be equal.

    QE was done to help the system with the debits and credits problem. It was designed to help the banking system towards a better reserved and more liquid norm by increasing the supply of credits. But the problem is that it only works for the short term. There is no way the economy can grow over the long term by borrowing $2.60 for every new $1.00 of GDP.

    We can not borrow our way out of debt. Neither could Trump. He guided his company through bankruptcy 4 times. We need him as president to do the same with the corporation called USA from the Wall Street banksters. Our problem is that our debt is the banksters assets. That is why it is appraised way higher then what it is really worth. The banksters do not want their assets to be worth less, thus our debt must never be reduced in price. The system is so set up that our debt must constantly increase or the system implodes on its own weight. And it is that weight of debt that will now sink the corporation called the USA. For that debt to have value, somebody has to hold it. And their lies our problem, we the little people can't afford the pile of soon to be worth less debt. Thus the very debt the system runs on will implode the system. For a system to function the amounts of debits and credits have to match. We are now like the Roman empire in its last days. It will implode on itself just like it did then during the Roman time period.

    Swines now make up the majority of government and our court system. They have ruled that slavery as in debt slavery is legal again. And for them, why not? It is our tax dollars that pay their wages and retirement well being. They are the overlords. They are upstairs, we are downstairs.
    Jan 1, 2016. 07:58 AM | 3 Likes Like |Link to Comment
  • U.S. Household Assets Are $100 Trillion  [View article]
    If only those numbers had any truth. Many producers are ramping up production in order to offset the lower prices to keep cash flow flowing to meet debt payments. Thus, the oversupply is increasing despite slowly rising demand. Capital budgets have been and continue to be cut. Eventually production will reach some threshold closer to demand and then begin to decline due to an unsustainably low capital investment. Money velocity is dropping because there is a lack of productive investments that require borrowing. That is because businesses are struggling with stagnant earnings because we already hit the peak of debt capacity. The question now is - how long will it be before demand will reach production levels, or production will reach demand levels? As an investor, will you live long enough to see a turnaround? Especially now when it takes $2.60 of new debt to grow the GDP by $1.00. There is a reason the 1% own most assets and the rest of us own most of the debt.
    Dec 31, 2015. 07:06 PM | 3 Likes Like |Link to Comment