Last week marked the moment when a full-blown financial crisis caused by falling oil prices, came to the United States.
Here are some records that have been established over the past week:
It was the worst week for the Dow over the past three years.
The best week for the VIX since September 2011
It was the worst week for the USD and USDJPY since July of 2013.
The last two weeks were also the worst for WTI crude oil for the last 3 years.
Played a role in the events in Greece (for Greek shares, it was the worst week since 1987), but still oil was the main theme.
There was a sharp deterioration in the credit market of America.
Over the past few years, America's oil sector has attracted about 550 billion. Dollars very cheap money, and now with the current oil prices fall doubted their ability to service debt.
The average yield of HY-credit sector debt securities increased from 400 points to more than 1,000 points.
Moreover, it drew for a return of the sector HY-market.
Deutsche Bank wrote a few weeks ago, when the price of WTI drops below $ 60, it will lead to bankruptcy of 1/3 of all shale oil producing companies.
If WTI Drops To $ 60, It Will "Trigger A Broader HY Market Default Cycle", Says Deutsche:
"Shock of this magnitude, if it materializes, will be enough to trigger a cycle of defaults Market HY (high yield debt instruments)."
Apparently, the shock began to materialize.
In this case, the oil crisis has not yet manifested itself in terms of the US economy and the labor market. But it is only a matter of time.
I think that the performance of the labor market will deteriorate in the coming weeks, as the last few years it is there was created a large number of vysokooplachennyh jobs.
I wonder how the Fed will react to the unfolding oil crisis. McAuley NICHOLAS LUDANOV.
