The comments below are What I would like to see. A spiral of...

The comments below are What I would like to see. A spiral of trouble makers as shale industry is a clear example.

The Fed had been using too much money to bail the banking systems. The liquidities are trapped and becoming big surplus.

Banks had used those money to manipulate into commodities market. It's called a Bank Run that why the Fed introduced a Guarantee Deposit Scheme which was enforced last month (not 100% sure but I kept a copy ) to make sure the surplus money are deposited into Federal trust fund to give banks guaranteed returns.

USD is strong because of the surplus cash in the system. US banks are not allowed to lend all the money based on the BASE3 policy. Banks SHOULD have used those money to keep companies solvents to ride out the hard time so the BASE3 did help the banks but It didn't help corporates at all.

Now the house of Representative, Republicans, is squeezing the credits in other words to lose liquidities which are trapped in the banks. This decision will cause a SYSTEMATIC risk to trouble shale players if oil price WON'T improve. It's also a negative for USD as well.



November 30, 2015
US credit tightens ahead of Federal Reserve policy shift

30-Nov (USAGOLD) — Dear future historians: Janet Yellen did not cause the late-2010s recession.

If a Federal Reserve interest rate rise in December is followed in short order by an economic slowdown, the temptation will be to blame the central bank and its chair for a premature tightening of monetary policy. But there are a growing number of red flags that suggest the US credit cycle has already turned, with consequences for the real economy next year, even before the Fed makes its move.

Smart money investors have positioned themselves for a rise in corporate defaults, a pullback in lending, and contagion across asset classes. The question is whether this is the start of a self-reinforcing downward spiral.

The answer depends in part on the complex chain that links the deepest recesses of the credit markets to the real economy.

A booming leveraged-loan market has fuelled the mergers and acquisitions mania of the past few years, boosting the stock market and the economic feelgood factor in the process — but it is in sharp reverse.

…It is too early to predict a downward spiral where caution begets more caution and deleveraging begets more deleveraging, but the emerging dynamics in credit markets are worrisome. Credit seems to be tightening, Fed or no Fed.