"For me a double-dip is another recession before we've healed from this recession ... The probability of that kind of double-dip is more than 50 percent," Shiller said. "I actually expect it."
Shallow-Drilling 'Ban' Costs Hercules $150,000 a Day: CEO
"We currently have 48 marketed rigs in the Gulf of Mexico and there's 14 idle," Rynd said. "By this September, you can have 70 percent of the Gulf of Mexico shallow-water jack-up fleet idle due to no permits."
If that happens, Hercules will make the "tough decision" on layoffs. One reason Hercules wants to avoid layoffs is there's no guarantee former employees would be available to come back if permits are issued again.
"Then when the operations do start back, you're starting back with less experienced crews, more intense training, and it can really impact your efficiency and the safety," Rynd said.
President Obama will be blamed for dragging his feet and causing higher unemployment.
With a great earnings season upon us it's interesting to see the contrast from Wall Street to Main Street. It's easy to understand how earnings are higher with all the fat that has been cut over the past years. What is confounding though and a mystery is how we expect our markets to go higher with people needing massive job creation in this country.
If Obama and his tree hugging army don't watch it with the drilling restrictions now we could see oil spike much higher sending an earnings killing arrow straight into the heart of our economic engine. Increased energy costs are the last thing we all need.
Spooked for now. I shall seek out shorting this market again very soon.
V.



