Oil’s Decline Takes Toll on Saudi Conglomerate
. . . the son of a son of a contractor, or something.
Best line in the piece, "'It’s too big to fail,” said a creditor at a Persian Gulf bank company who is close to SBG. “It’s an integral part of the Saudi system so they will find a solution,” the person said." Dude, it's not too late to pick up a large jug of Vasoline. You are gonna need it.
Unless the price of oil take a sudden, sustained hike, large companies in Saudi will unquestionably fail, as the entire nation is an economic bankruptcy case without oil above $80-100 per bbl. The Saudi's can likely cut enough "welfare" to make ends meet at around $100, but at $50? Nope!
I stand by my estimates that oil will end in the $30 range or perhaps a bit less. But even at $50, Saudi is in serious trouble, and will not be able to pay the bills.
There is a reason why the House of Saud is leaving the Yemeni's on their own to fight the Iranian supported Shia factions. No money.
Couldn't happen to a nicer House!