Wondering where the inflationary impact of The Fed’s massive monetary policy experiment is leaking out (aside from stock prices)… Look no further…
What happens when too much cheap money chases a limited asset? Just like housing, ‘cost’ of Shale Oil wells have become about the monthly nut, not the all-in as The Fed-fueled pump focuses everyone on the short-term gains (ignorant of long-term pains). As the following chart shows, this credit-fueled exuberance has inflated basic costs for US oil producers dramatically…
…and with their costs of funding exploding higher, the vicious circle of higher costs and lower revenues for these levered firms is spinning faster and faster.
h/t @RudyHavenstein
via Zero Hedge http://ift.tt/12mBsqT Tyler Durden