Fracking — A New Bubble for a New Year

[Draggingtree]

Ludwig von Mises Institute:

Fracking — A New Bubble for a New Year

 

JANUARY 22, 2015 Mark Abdelnour

 

Another year is under way, and we are in the midst of yet another central bank-induced credit bubble. This time, the culprit is shaping up to be the oil and gas industry. Hydraulic fracturing, or “fracking,” has seen a marked rise in usage in the United States over the last six years. It represented a new and innovative way to extract hydrocarbons from rock formations deep underground. Many may be tempted to say that the emergence of fracking, as well as the jobs it has created, is further evidence of the free market at work. However, as David Stockman makes clear in this excellent article, the fracking bubble would never have materialized if not for artificially low interest rates instituted by the Federal Reserve in the advent of the 2007–2009 financial crisis

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@Draggingtree

 

Thanks, A long read but very informative and interesting. I started wondering about the oil boom awhile back when there were ads on the radio to buy into oil wells. Those type of things usually happen when the smart money is already leaving.