ragerunner

"even Fox News reported on it...." Hts121 I will say, you may be one of the most politically consumed individual I have every posted with. Let the politics go to a political thread, both sides are a joke.

Very good points. We do need to focus on commodities and many of them have been going up in prices. What to watch is how much/if any they start declining. If they start declining (like oil has) this means demand is falling and the world economy is in decline. Trade surplus are important to watch as well. US trade deficit shrinks in April even as exports drop "Exports saw their first fall since November as the deepening crisis in the eurozone hit demand for goods. US imports, however, also shrank dramatically due to weak domestic demand meaning the trade deficit overall fell 4.9% to $50.1bn (£32.5bn)." http://www.bbc.co.uk/news/business-18369532 So if this type of news continues it means we have a problem. The US consumer is consuming less (remember consumptions makes up a large part of our economy and GDP) and the world is also consuming less of our items that we produce. If this keeps up you start having less jobs being create (which the data is now showing) and if it continues we will start seeing job losses again. Some times commodities can go up do to other external forces (nature - big droughts or floods in regions that produce certain commodities). They also can change (oil does this a lot) when political tensions rise or wars break out. So there are times when commodities prices are rising do to other things besides demand.

Did they drop if you eliminate the sales drop assigned only to gasoline? I honestly don't know. But if you believe Fox News and the Commerce Department, it seems like the drop in gas sales pulled down the overall sales by 0.2 in both May and April. Since April has now been revised down to a 0.2 drop overall, it seems like a wash, no? You're the expert. Best thing for all of the "handbasket" folks is that it is a win-win scenario. If gas prices fall, then the ride gets quicker because retail sales will fall and that will be a lead indicator we are on our way to hell. On the other hand, if gas prices rise, then those increases will be a burden on the economy and, again, we are on our way down. Gramarye and Hoot - agreed totally. But we all know we can't pass up a good opportunity to panic. Actually gas prices were at their highest in April. So they should have been juicing the retail numbers, yet they came in negative. (showing that the consumer doesn't have the ability to absorb these increases) Food etc. I agree as well, the problem is that on items that are more of a necessity (food, medicine, etc..) spending is dropping yet the cost of the items are rising. This is a real problem for the economy and main street. The consumer is showing they are unable to absorb price increases on the many needed things. This has been a major topic throught this thread. What is happening in America (and many other places) is on items that are of necessity prices are rising (inflation). Oil jumps in and out of this issue. Then on things that are not on the necessity list, prices are falling (tv's, electronics, etc. (deflation). Then you add in the biggest wealth item for most American's, their house, which is also deflating. This creates what CincyDad talked about a lot, stagflation. Stagflation really hurts middle income America more than just about any other income bracket. Stagflation has proven in the past to be a very ugly beast.

Maybe you should check the details a little more. Plus, retail sales went negative in April when gas prices were still high. Something more than gas prices are impacting spending. Carry on. Touchy. I wasn't tyring to mess with your narrative...... I was simply saying that the headline was misleading, which it is. Although I'm sure the drop in gas prices was manipulated by TPTB to kick the can down the road yet again, even Fox News reported on it.... A sharp drop in gas prices pulled down overall sales in both months by 0.2 percent, the Commerce Department said Wednesday. ........................ Cheaper gas also lowered a measure of wholesale prices by the most in nearly three years. ......................... The decline at the pump could bode well for consumers in the coming months, too. The average national price for a gallon of gas was $3.54 Wednesday — 40 cents cheaper than the year's peak price in early April. And while overall retail sales barely budged in May, Americans did spend more on big purchases. Auto sales rose sharply, and sales of furniture and appliances also increased. That suggests consumers may already be seeing some benefit from lower gas prices. "The continued fall in gasoline prices should support consumption by freeing up cash to be spent on other items," said Paul Dales, senior U.S. economist at Capital Economics. "So although real consumption growth looks set to slow in (the second quarter), we doubt it will grind to a complete halt." http://www.foxnews.com/us/2012/06/13/us-retail-sales-dropped-02-percent-in-may/ So why did retail sales drop in April?

Maybe you should check the details a little more. Plus, retail sales went negative in April when gas prices were still high. Something more than gas prices are impacting spending. Carry on. Retail Sales Show Economy Flirting With Recession "Lower gas prices, as expected, did contribute to the drop in retail sales; however, sales of consumer basics, such as groceries, health and personal care products, and general merchandise sold in department and variety stores were also down. Restaurants and bars saw a drop too. Overall, retail sales were down by 0.2% in both April and May. Regarding the broader economy, flagging retail sales in April and May, should be evaluated alongside stagnant wages for the last three months, falling productivity and factory orders, and declining prices reported by many manufacturers and service establishments polled by the Institute for Supply Chain Management. Businesses are slashing prices to maintain volumes, cutting back on new orders and likely have more workers than they need. Consumers are trimming revolving credit and becoming more cautions. Overall, if sentiment and spending does not turn up in June and July, the economy is headed for a period contraction -- negative growth and a mild recession. Particularly alarming, these data do not bear the full weight of the slowdown in Europe which will grip the U.S. economy more significantly in the summer months." http://business-news.thestreet.com/denver-post/story/retail-sales-show-economy-flirting-with-recession/11579515

May retail sales fall as gas purchases tumble April sales revised lower to mark first back-to-back drop in two years "Sales were also revised lower for April and March, with April’s revision now showing a decline instead of an increase. Lower sales over the past two months marked the first back-to-back drop since May and June 2010." http://www.marketwatch.com/story/may-retail-sales-fall-as-gas-purchases-tumble-2012-06-13

Recession crushed middle-class wealth: Fed survey Median net worth fell by $49,100, erasing 18 years of gains "WASHINGTON (MarketWatch) — The recession crushed the net worth of middle-class families as real estate values tumbled, according to a survey released by the Federal Reserve on Monday. The Fed’s survey of consumer finances between 2007 and 2010, which is adjusted for inflation, showed median income fell 7.7% from $49,600 in 2007 to $45,800 in 2010 and that median net worth fell 38.8% from $126,400 in 2007 to $77,300 in 2010, approximately the level recorded in 1992." http://www.marketwatch.com/story/recession-crushed-middle-class-wealth-fed-survey-2012-06-11?dist=afterbell

The impact on the economy are very different when debt is being paid off verse when debt is being defaulted on. One can create more growth and wealth the other creates reduced growth and loses. Both for the holder of the debt and the debtor. It appears that a lot of the reduction in debt is from default (at least up to 2010 it was). Something tells me it hasn't changed that much. Defaults Account for Most of Pared Down Debt "The sharp decline in U.S. household debt over the past couple years has conjured up images of people across the country tightening their belts in order to pay down their mortgages and credit-card balances. A closer look, though, suggests a different picture: Some are defaulting, while the rest aren’t making much of a dent in their debts at all. First, consider household debt. Over the two years ending June 2010, the total value of home-mortgage debt and consumer credit outstanding has fallen by about $610 billion, to $12.6 trillion, according to the Federal Reserve. That’s an annualized decline of about 2.3%, which is pretty impressive given the fact that such debts grew at an annualized rate in excess of 10% over the previous decade. There are two ways, though, that the debts can decline: People can pay off existing loans, or they can renege on the loans, forcing the lender to charge them off. As it happens, the latter accounted for almost all the decline. Our own analysis of data from the Fed and the Federal Deposit Insurance Corp. suggests that over the two years ending June 2010, banks and other lenders charged off a total of about $588 billion in mortgage and consumer loans. That means consumers managed to shave off only $22 billion in debt through the kind of belt-tightening we typically envision. In other words, in the absence of defaults, they would have achieved an annualized decline of only 0.08%." http://blogs.wsj.com/economics/2010/09/18/number-of-the-week-defaults-account-for-most-of-pared-down-debt/

So they added another $100 million to their debt obligations. With an economy that is in free fall and is struggling to cover their current debt obligations. This will not kick the can very far down the road for them and Europe. Debt crisis: live "Spain faces supervision by international lenders after a €100bn bailout for its banks, EU and German officials said, contradicting Prime Minister Mariano Rajoy who had insisted the cash came without such strings." "Kathleen Brooks, research director at Forex, gives us her take: The markets have whimpered to the finish line today after a bout of knee jerk euphoria post the announcement of the Spanish banking bailout at the weekend. The markets haven’t perceived the bailout as way to reduce credit risk in the periphery, in fact Spanish bond yields rose to their highest level since the end of May as investors digested the prospect they may not get all of their money back in the event of a Spanish default. And it didn’t stop there. Italian 10-year yields are rising at an alarming rate, and have ended the European session above 6pc, for the first time since January." http://www.telegraph.co.uk/finance/debt-crisis-live/9323444/Debt-crisis-live.html

I wonder how much of this drop in private debt is due to default (bankruptcy)? Anyone have a chart showing how much debt has been 'removed' do to default?

Initial Claims Beat Expectations, With Prior Revised Higher, As Whopping 105 Thousand Lose Extended Benefits "While it is a number which nobody will care about today, especially if it is better than expected, initial claims printed at 377K on expectations of 378K, the first beat of expectations in 5 weeks. Of course, the claims number next week will be revised to over 380K. Why? Because, as now happens every single week, last week's initial claims number was revised higher from 383K to 389K. As a reminder, last week this number was expected to print at 370K. So only a 19K miss when all is said and done. But at least the mainstream media has its bullish for general consumption headline: "Initial Claims drop by 12,000" even as market participants realize this is still QE-promoting. Continuing claims printed at 3,293K, missing expectations of 3,250K, and down from an upward, of course, revised 3,259K. But the most disturbing observation is that in one week alone, a whopping 104,600 people hit the 99-week cliff, and stopped collecting extended unemployment benefits, the most since December 2011, as those on EUCs dropped by -45,808 while those on Extended benefits dropped by a astounding -58,829." http://www.zerohedge.com/news/initial-claims-beat-expectations-prior-revised-higher-whopping-105000-lose-extended-enefits?tw_p=twt

Stocks Rise as Euro Rallies on Central Bank Optimism “There’s always hope that some magic tool would be found,” Ron Florance, managing director of investment strategy for Wells Fargo Private Bank, said in a telephone interview from Phoenix. His firm manages $169 billion. “There’s no sense of any economic recovery on the near-term horizon for Europe. Things could get worse. Investors tend to be optimists. So they are always hoping for something better.” http://www.bloomberg.com/news/2012-06-06/asian-stocks-rise-on-u-s-data-spain-aussie-oil-gain.html I wonder if the agreed to plan includes added a lot more heat to the German's to take on more of the Eurozone debt. David Cameron and Barack Obama agree on 'immediate plan' to resolve eurozone crisis "David Cameron and US president Barack Obama have agreed on the need for "an immediate plan" to resolve the eurozone crisis as the Prime Minister prepares to fly to Germany for crisis talks." http://www.telegraph.co.uk/news/politics/9313461/David-Cameron-and-Barack-Obama-agree-on-immediate-plan-to-resolve-eurozone-crisis.html Debt crisis: Eurozone under increasing threat, warns ECB "Six German banks have been downgraded, including the country's second largest lender Commerzbank, as concern grows over further shocks emanating from the euro area debt crisis." http://www.telegraph.co.uk/ You mean creditors get 'concerned' when the terms of the game keep changing! I wonder if this uncertainty has anything to do with capital flight from many european nations and the significant increase in their cost to borrow? Debt crisis: Live "Wall Street and European markets rise after ECB leaves rates unchanged at 1pc, extends unlimited short-term cash offering to keep money flowing to banks and Draghi says downside risks far from Lehman turmoil." "A banker who was involved in the Greek debt haircut negotiations that ultimately saw investors lose the majority of the value of their bonds has pleaded for other countries to avoid similar tactics. Jean Lemierre of French bank BNP Paribas told a conference in Copenhagen hosted by the Institute of International Finance: Don't do it again, please, in the official sector. Once is enough. Stick to your word, stick you commitments, and pay back the creditors. I'm very grateful to the heads of state in Europe (for having) promoted a negotiated solution. We are not happy about the haircut at the end of the day, of course, but negotiation has great value. It is very crucial when you have a process to understand what is going to happen, otherwise you have a systemic crisis. I hope in the future we shall stick to that principle of negotiation. This is key." http://www.telegraph.co.uk/finance/debt-crisis-live/9312612/Debt-crisis-Live.html

One thing that I have learned doing this thread is just how long we can/will kick the can down the road. Maybe we can keep doing this for decades? Lockhart Says Extending Operation Twist ‘Option on the Table’ "Federal Reserve Bank of Atlanta PresidentDennis Lockhart said extending Operation Twist, the program to lengthen maturities of debt on the central bank’s balance sheet, is an “option on the table.” “There is capacity to do more, so it is an option on the table,” Lockhart said today in response to audience questions after a speech in Fort Lauderale, Florida. “It is certainly an option. I’m not going to speculate on what the FOMC will do,” he said, referring to the Federal Open Market Committee." http://www.bloomberg.com/news/2012-06-06/lockhart-says-extending-operation-twist-option-on-the-table-.html

So current shareholders in the banks would basically be wiped out and it creditors would have to take manditory writedowns (much like Greece - a form of default) or become new shareholders after the other shareholders are eliminated. This should be interesting. Barroso: EU bank plan a step toward banking union "FRANKFURT (MarketWatch) -- European Commission President Jose Manuel Barroso on Wednesday said new proposals for dealing with failed banks move Europe a step closer to a "banking union." "Today's proposal is an essential step towards banking union in the EU and will make the banking sector more responsible. This will contribute to stability and confidence in the EU in the future, as we work to strengthen and further integrate our interdependent economies," he said, in a statement. The proposals unveiled Wednesday would require tighter coordination among national regulators. A "bail-in" tool would see banks recapitalized with shareholders wiped out or diluted, while creditors would see claims reduced or converted to shares." http://www.marketwatch.com/story/barroso-eu-bank-plan-a-step-toward-banking-union-2012-06-06 Not as good as originally posted. Also the average worker saw their income fall 2.0% when factoring in inflation. So, unless you got a 2%+ raise last quarter you are poorer than you were in December. The decline in gas prices should reduce next quarters numbers, if gas prices stay down. First-quarter productivity revised to 0.9% decline "WASHINGTON (MarketWatch) - The productivity of U.S. workers and businesses fell more sharply in the first quarter than originally estimated, as output was revised lower and hours worked rose slightly faster, the Labor Department said Wednesday. Productivity dropped 0.9% in the first three months of the year, compared to an initial estimate of a 0.5% decline. Economists surveyed by MarketWatch projected a revised 0.8% decrease. Output - the amount of goods and services produced - was revised down to a 2.4% increase from 2.7%. The increase in hours worked was revised up to 3.3% from 3.2%. As a result, unit-labor costs climbed 1.3% in the first quarter instead of 0.9% as originally reported. Adjusted for inflation, hourly wages fell 2.0% in the first quarter, more than double the initial estimate of a 0.9% decline." http://www.marketwatch.com/story/first-quarter-productivity-revised-to-09-decline-2012-06-06

The newest drama on TV. As Europe Turns. Even if they come up with the ultimate bailout, structural damage is now in place for most of the worlds economy's and will play out with slow growth/negative growth for the next 6-9 months. Spain makes plea for EU aid for troubled banks "Spain has admitted for the first time that it needs European Union support to prop-up its ailing banks, saying rising borrowing costs had shut the country out of bond markets." http://www.telegraph.co.uk/finance/financialcrisis/9312326/Spain-makes-plea-for-EU-aid-for-troubled-banks.html Nein! Nein! Nein! Again No, Germany has not agreed to a "banking union". "It has not agreed to mutualise the costs of bank bail-outs, knowing perfectly well that this means 'Eurobonds lite' and the start of a slippery slope towards debt pooling. It has not cleared the way for use of the EU rescue machinery (EFSF and ESM) for direct recapitalisation of banks – which is what Spain wants to avoid having to bear the contingent liabilities of its crumbling lenders on sovereign shoulders. Germany has not moved one inch towards fiscal union of any kind. It may do so (I make no prediction). It has not done so yet. Europe faces exactly the same problem it has had since the start of the crisis." http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100017648/nein-nein-nein-again/

Slow down there Chief. I haven't predicted anything. You haven't?

It appears someone believed the wheels might be falling off in the not to distant future. Banks Cut Cross-Border Lending Most Since Lehman: BIS "Global banks scaled back cross-border lending to companies, governments and each other at the fastest rate since 2008 in the final quarter of last year, with lenders based in the euro area leading the way. Lenders reporting to the Bank for International Settlements, the record-keeper of the world’s central banks, shrank their cross-border assets by $799 billion, or 2.5 percent, in the three months ended Dec. 31, data released by the BIS on June 3 show. The decline was the sharpest since the fourth quarter of 2008, when interbank lending markets froze worldwide following the collapse of Lehman Brothers Holdings Inc." http://www.bloomberg.com/news/2012-06-03/banks-cut-cross-border-lending-most-since-lehman-bis.html FHA Loan Problems Mounted in April as Foreclosure Starts Soar 73% "The performance of FHA loans dominates the April Mortgage Monitor report released Thursday by Lender Processing Services (LPS). While GSE and private loans saw significant drops in foreclosure starts and portfolio loans trended down slightly, foreclosure starts for FHA loans soared, jumping 73 percent in April. While all 2005+ vintages of FHA loans had increased numbers of starts, the increases for loans originated in 2008 and 2009 were dramatic." http://www.mortgagenewsdaily.com/06012012_foreclosures.asp

Hts121 I actually hope you are right. That we don't end up in another 'technical' recession and that europe doesn't end up in something more than a recession. At the end of the day all of these things mean more challenges, stress and for some, suffering. But, I will continue to believe that printing a positive GDP and kicking the can down the road is not a good long term economic strategy.

April U.S. factory orders decline 0.6% "WASHINGTON (MarketWatch) - Orders for goods produced in U.S. factories decreased 0.6% in April, the Commerce Department reported Monday. Economists surveyed by MarketWatch expected orders to rise by 0.1%. Factory orders fell a revised 2.1% in March, down from a prior estimate of a 1.5% decline. Orders for durable goods - products meant to last at least three years - were flat in April. Orders for nondurable goods tumbled 1.1%." http://www.marketwatch.com/story/april-us-factory-orders-decline-06-2012-06-04

I still believe that some new plan will allow the EU to slowly desolve or give them time to remove the weaker pieces. If the EU just collapses we are all in for a very nasty event since the EU is the largest economy in the world. Bigger than the US or China. Eurozone is 'unsustainable' warns Mario Draghi "The head of the European Central Bank hit out at the political paralysis gripping the region as he warned the eurozone's set-up was "unsustainable". "Mario Draghi said the central bank could not "fill the vacuum" left by member states' lack of action as it was claimed the zone is on the point of "disintegration". http://www.telegraph.co.uk/finance/financialcrisis/9304027/Eurozone-is-unsustainable-warns-Mario-Draghi.html

What is that I see falling out of the sky, its money from the next QE in an effort to boost commodities, wall street, and make main street think things are getting better again (and to get them to buy a house, a new car and another tv). The high from the printing of QE2 is now wearing off and the withdraw symptoms are starting to show. I also think we will see some 'new' massive idea and fund to save Europe very soon. It will be like the last 10 ideas, in that it will just kick the can down the road. But Europe is at a point where kicking the can is about their only option outside of a full depression for many (of course Greece and Spain are pretty much there). Also, April's number was revised downward from 115,000 to 77,000. Huge revision. U.S. economy creates 69,000 jobs in May Unemployment rate rises to 8.2% "Economists surveyed by MarketWatch had forecast a 165,000 increase in new jobs and they expected the jobless rate to hold steady at 8.1%." http://www.marketwatch.com/story/us-economy-creates-69000-jobs-in-may-2012-06-01 U.S. May ISM factory index declines modestly "WASHINGTON (MarketWatch) - Conditions for the nation's manufacturers slipped in May after reaching its highest level since last summer in April, the Institute for Supply Management reported Friday. The ISM index fell to 53.5% in May from 54.8% in April." http://www.marketwatch.com/story/us-may-ism-factory-index-declines-modestly-2012-06-01 Euro-zone May manufacturing PMI falls to 45.1 "FRANKFURT (MarketWatch) -- Manufacturing activity in the 17-nation euro zone shrank at the fastest pace in three years in May, according to the Markit purchasing managers' index for the sector released Friday." http://www.marketwatch.com/story/euro-zone-may-manufacturing-pmi-falls-to-451-2012-06-01 China manufacturing slows sharply, data show Analysts urge more government spending "The official PMI, released jointly by the China Federation of Logistics & Purchasing (CFLP) and the National Bureau of Statistics, fell to 50.4 on a 100-point scale, sharply lower than April’s 53.3 print." http://www.marketwatch.com/story/china-manufacturing-slows-sharply-data-show-2012-05-31

Another quarter of this type of data and decline and a technical recession is almost a given within the next 9-12 months. Of course another big round of QE could juice commodities and the stock market enough to keep us just above 0, maybe. Chicago business index at lowest level since 2009 "The compilers of the report noted that three consecutive declines in the monthly PMI or the three-month rolling average have occurred before each of the last seven recessions, with a lead time of about six to eight months." http://www.marketwatch.com/story/chicago-business-index-at-lowest-level-since-2009-2012-05-31 U.S. weekly jobless claims jump to 383,000 Applications for unemployment benefits at highest level in 5 weeks "Jobless claims rose by 10,000 to a seasonally adjusted 383,000 in the week ended May 26, the U.S. Labor Department said Thursday. Claims from two weeks ago were revised up to 373,000 from an original reading of 370,000, based on more complete data collected at the state level." http://www.marketwatch.com/story/us-weekly-jobless-claims-jump-to-383000-2012-05-31 Hiring trend for private payrolls slows down: ADP "WASHINGTON (MarketWatch) — The pace of hiring in private jobs is slowing down, according to an employment report released Thursday by payrolls-processor Automatic Data Processing Inc." http://www.marketwatch.com/story/hiring-trend-for-private-payrolls-slows-down-adp-2012-05-31 U.S. GDP up 1.9% in first quarter, revised lower "WASHINGTON (MarketWatch) — The U.S. economy ran into a deeper soft patch in the first quarter than initially estimated, a government report showed on Thursday." http://www.marketwatch.com/story/us-gdp-up-19-in-first-quarter-revised-lower-2012-05-31 Kohl's shares stumble on weak May sales "SAN FRANCISCO (MarketWatch) -- Kohl's shares fell 5% to $46.40 early Thursday after the retailer reported a 4.2% decline in same store sales for May. Analysts had estimated Kohl's would post a 1.2% decline." http://www.marketwatch.com/story/kohls-shares-stumble-on-weak-may-sales-2012-05-31 Capital flight from Spain accelerates to record €66bn "Spaniards are moving money out of their nation's banks faster than at any point since records began, as Fitch downgrades eight regions and ECB President Mario Draghi warns Europe's leaders must clarify their vision for the euro." http://www.telegraph.co.uk/finance/debt-crisis-live/9301285/Debt-crisis-live.html

Spain faces 'total emergency' as fear grips markets "Spain is facing the gravest danger since the end of the Franco dictatorship as the country is frozen out of global capital markets and slides towards an epic showdown with Europe." "Italy felt the full brunt of contagion from Spain on Wednesday, with 10-year yileds back near 6pc. The euro fell to a 2-year low of $1.239 against the dollar. Crude oil and metal prices plummeted and save-haven flight pushed rates on 2-year German debt to zero. Gilt yields fell to 1.64pc, the lowest in history." "The country is caught in a classic deflationary vice: a rising debt burden on a shrinking economic base. “Once you get into such a negative feedback loop, you can move beyond the point of no return quickly,” he said." http://www.telegraph.co.uk/finance/financialcrisis/9301270/Spain-faces-total-emergency-as-fear-grips-markets.html ITALIAN BONDS UNDER PRESSURE, AUCTION FALLS SHORT OF TARGET "(ANSA) - Rome, May 30 - Italian bonds came under pressure on the money markets on Wednesday when the Treasury failed to hit its target in an auction of five-year and 10-year bonds. The Treasury sold a total of 5.74 billion euros of bonds, compared to a target of 6.25 billion, and had to offer higher yields." http://www.lifeinitaly.com/news/en/152904

This is not a very good sign for the 'housing recovery'. Since April through about June is the peak of the buying season. Pending Sales of U.S. Homes Decrease by Most in a Year "The number of Americans signing contracts to buy previously owned homes fell in April by the most in a year, indicating the U.S. housing recovery remains uneven." http://www.bloomberg.com/news/2012-05-30/pending-sales-of-u-s-existing-homes-decline-by-most-in-a-year.html

I think oil is sending a signal about were the world economy is currently at and is headed. Oil closes below $88 for first time since October Spain woes, scaled back China stimulus hopes weigh on futures "SAN FRANCISCO (MarketWatch) — Crude-oil futures dropped Wednesday to mark their lowest close since October as the U.S. dollar strengthened and as concerns over Spain and scaled-back expectations for Chinese economic stimulus dulled the prospects for oil demand." http://www.marketwatch.com/story/crude-oil-drops-closer-to-90-a-barrel-2012-05-29?dist=countdown