Perfect Cases in Point

We wish they were more rare. But just as rising wages are bad news for business(?) and solar most horribly spells doom for coal, word in the oil game is that consistent catastrophes are needed for oil to remain strong:

The weakness comes at a time when speculators have started rebuilding bullish positions after a sell-off last month, betting the market will tighten in the second quarter. Yet, Brent physical oil traders say the opposite is happening so far, according to interviews with executives at several trading houses, who asked not to be identified discussing internal views.

“We need to see the market going really into deficit for oil prices to rise,” Giovanni Staunovo, commodity analyst at UBS Group AG in Zurich, said. “If this is temporary, it could be weathered, but it needs to be monitored.”

The weakness is particularly visible in so-called time-spreads — the price difference between contracts for delivery at different periods. Reflecting a growing surplus that could force traders to seek tankers as temporary floating storage facilities, the Brent June-July spread this week fell to an unusually weak minus 55 cents per barrel, down from parity just two months earlier. The negative structure is known in the industry as contango.

There’s a new word for you. And yes, many of the other words they use are the ones you know, with commonly agreed-upon definitions. I know one needs a lot of sophisticated financial knowledge to really get the subtleties of these economics, but is the overall message really lost? Of no consequence whatsoever? Yes, we can play terrible music on beautiful instruments, just as we can vote against our interests and condemn ourselves with our own words ( though it really isn’t necessary to do all three at once). Thanks to Bloomberg for delivering the straight dope in the top story today. It’s important, you know? Just like it will be to move past the market riff, as I hope to soon.
And also, the term ‘oil futures.’ FY, irony.

Before Petroleum

One thing that is very difficult to get to, maybe not as difficult as a gushing volcano of oil a mile below the surface of the Gulf, but… just how did we get o this place? With major corporate interests having us all right where they want us, able to create a catastrophe but still leave us unconvinced that we/they should stop the activity that created the situation in the first place. And they are right, in a way, because what would that be? And on top of that, we blame our political leaders for not being able to immediately fix the situation – but not for creating the atmosphere that made the situation possible. See. Difficult. Where do you even start? Maybe 1876?

Johnson’s rocky relations with Congress resulted in an impeachment trial. Johnson survived in office, and was followed by Civil War hero Ulysses S. Grant, who was elected in 1868, and reelected in 1872.

The eight years of the Grant administration came to be known for scandal. Financial chicanery, often involving railroad barons, shocked the country. The national economy faced difficult times. And federal troops were still stationed throughout the south in 1876 to enforce Reconstruction.

The Candidates In the Election of 1876

The Republican Party was expected to nominate a popular senator from Maine, James G. Blaine. But when it was revealed that Blaine had some involvement in a railroad scandal, Rutherford B. Hayes, the governor of Ohio, was nominated at a convention that required seven ballots. Acknowledging his role as a compromise candidate, Hayes delivered a letter at the end of the convention indicating he would only serve one term if elected.

On the Democratic side, the nominee was Samuel J. Tilden, the governor of New York. Tilden was known as a reformer, and had attracted considerable attention when, as New York’s attorney general, he prosecuted William Marcy “Boss” Tweed, the famously corrupt political boss of New York City.

The two parties did not have tremendous differences on the issues. And as it was still considered unseemly for presidential candidates to campaign, most of the actual campaigning was done by surrogates. Hayes conducted what was called a “front porch campaign,” in which he talked to supporters and reporters on his porch in Ohio and his comments were transmitted to newspapers.

Waving the Bloody Shirt

The election season degenerated into the opposing sides launching vicious personal attacks on the opposition candidate. Tilden, who had become wealthy as a lawyer in New York City, was accused of participating in fraudulent railroad deals. And the Republicans made much of the fact that Tilden had not served in the Civil War.

Read all about it.