If interest rates go up, economic activity slows. And our cost of capital goes up. Both will push us further into the red.
Are we paying our vendors? Is the accounting group tasked with looking for pockets of cash that can be brought home?
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Hey still waiting to hear about wooden crate haven’t got all night ok bro.
BKR did not go down the sewer because of some PG rated dissing. It went down the sewer because of people like
@1xdi+1eoOoZSV
condescending lecturing above their pay grade, IQ, training, and experience.
Rates go up and rates go down just like you know what; but, BKR always stays down like a limp you know what
Hey where baker wooden crate with dum iron inside from Santa? Need to know chop chop for big decision by d-mb iron VP ok buddy.
Is GFY the usual way to communicate with one another at BH? No surprise things went down the sewer.
@1xdi+1eoOoZSV
Pipe down. Stop embarrassing yourself. You're talking nonsense. You agree with me. Cause and effect are well documented in economics literature, in finance, and in contemporary corporate/O&G history.
A company can not fail to pay employees. The state will step in. So before that point, layoffs happen. Losing money and not paying vendors happen before that.
Watch the balance sheet.
And GFY.
The fact that you both work for baker suggests neither knows what you are talking about and no one is interested in your opinion.
Inflation isn’t what you think it is. The machinations of monetary policy are so far removed from the daily life of the average person as to render it irrelevant to their existence.
Demand for O&G has been in steady decline for the past five years, long before monetary inflation arrived in the current form. Maybe if O&G companies weren’t so deeply mired in debt, and run with a modicum of fiscal foresight, they wouldn’t have to worry about tiny hikes in interest rates wrecking their operations. Blame the executives who ran the industry into the ground, not the Federal Reserve.
@1rly+1eoOoZSV
Sure it does. Layoffs follow cash flow issues
Cheap money lubricates economic activity. Higher financing costs slow economic activity. Slower economic activity means less demand for energy. Less demand for energy means less drilling.
Higher interest means that heavily leveraged oil field services cost more.
See Keynes, Friedman, Dalio, Dallas Fed research, etc.
GFY
- Your post has nothing to do with layoffs at BH.
- I don’t know what your day job is, but stick to it; your understanding of monetary policy is (to put it politely) less than complete.
BH is failing because of poor business decisions made by incompetent leadership, not because of monetary policy. BH was in trouble long before the pandemic and inflation arrived.
Bahahahaha too funny! All we can do is laugh
@gyv thanks for getting me in really hot water with my significant other.
All I did was Google to see who this Mia Khalifa person is that you referenced and I saw an article that said "Mia Khalifa's monthly income is more than many CEO's salaries." So of course I immediately called BS on it because it can't possibly be more than that of "Our Dear Leader." Anyhoo...one thing led to another and during my intense search using only one hand my aforementioned partner walked in on me doing some intense research and now I am banned from using Google to do any further "research."
Gosh darn, not being to use Google anymore could be really detrimental to my rising career @ BKR.
Vendors are not getting paid. Everyone sits on the invoices for well beyond 180 days, sitting on them like Mia Khalifa sits on a … well you know …