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The price of oil dropped 20-30% over the weekend. This is due to Russia refusing to cut production in the face of suppressed demand, thanks to the shut downs in China caused by coronavirus. Since OPEC can't reach a deal, they are going to race to the bottom by creating a massive oversupply. The shocks have already caused world markets to plummet into what looks like deflationary hell. Oil is hitting unthinkable lows. It looks as if our global economy has hit an iceberg, and is taking on water. Are lefties going to get their precious market crash before the election?
As a critic of Trump, I don't wish the crash. I don't blame Trump for the Dow or give him the credit.
Italy recently announced a total lockdown in the richest parts of the country with armed military guards at all checkpoints and long prison sentences for anyone who dares to leave. It is economically devastating.
All these lock downs crush the demand for oil. It has been the catalyst for all this. Ever since China's demand for oil literally crashed as their economy ground to a halt. Their PMI crashed to 31 (anything under 50 is contraction in industry). Less industrial demand = less demand for oil. So there will be glut of oil for months. It may take a year or more to sort out, and Russia is going to do everything they can to mess that up for everyone for as long as possible.
All those folks driving electric vehicles... Hope you bought it because you care for the environment, and not because you thought it was more economical. Although as it turns out, it is worse for the environment than cars powered by combustion engines, so....
Quote:
Originally Posted by moneill
As a critic of Trump, I don't wish the crash. I don't blame Trump for the Dow or give him the credit.
Agreed. The Fed has far greater influence behind the scenes. Although I think because of the internet, more people are aware of the role the fed plays in making and breaking markets. But the Fed can't make it rain for ever. They are out of ammo thanks to the era of ultra low interest rates, QE4eva, and the resulting high debt load.
Well, who would have ever thought that the Trump gang would be blaming the problems caused by the Coronavirus epidemic on the leftists/liberals? How convenient for them to shift the blame towards their opposition. But the unforeseen effect will be that they will lose even more credibility for such a nonsensical claim.
Progressives probably should have factored in the potential for situations like this before they went all outsource and globalization.
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Risk Management Lefties sort of recall hearing about it maybe
All these lock downs crush the demand for oil. It has been the catalyst for all this. Ever since China's demand for oil literally crashed as their economy ground to a halt. Their PMI crashed to 31 (anything under 50 is contraction in industry). Less industrial demand = less demand for oil. So there will be glut of oil for months. It may take a year or more to sort out, and Russia is going to do everything they can to mess that up for everyone.
All those folks driving electric vehicles... Hope you bought it because you care for the environment, and not because you thought it was more economical. Although as it turns out, it is worse for the environment than cars powered by combustion engines, so....
This is far bigger than China and the markets reflect that. Lockdowns can come to any region anywhere in the world.
Progressives probably should have factored in the potential for situations like this before they went all outsource and globalization.
__________
Risk Management Lefties sort of recall hearing about it maybe
But why did Trump supporters vote for Romney, McCain, Bush and Reagan if they really were so concerned about outsourcing and globalization? As long as people vote for corporate tools, you get exactly that.
Did you miss the fact that Russia refuses to cut production, and they intend to flood the market with cheap oil? That's quite literally why it crashed 20-30% over the weekend. I'm a millennial, so I have not seen everything, but I tend to believe this is unprecedented. Russia is literally declaring economic war on the west, and going for the jugular. There is no denying, many lefties have been rooting for this to happen, because they have told us so. I guess that means many of our nation's lefties are rooting for Russia to inflict maximum damage.
Did you happen to see Turkish tanks and soldiers tearing down Greece's borders so millions more migrants flood into Europe? The entire west is under assault from many different angles. This is the age of chaos that the left has been hoping for. Hope you are happy. Hope you will be happy if you happen to find yourself standing in a breadline someday. You are living in the most generous nation in the world, so you can always consider yourself lucky for that.
Be glad you don't live in Venezuela, which is what the left wants to turn the USA into, they are entirely dependent on high oil prices for survival
Russia understands the long term need for oil globally is declining and will continue to decline over the next several decades. Russia is working to get as much as they can right now before every oil producing mg country realizes there is way to much supply and economies in trouble over declined demand.
Just a 20 percent drop in need may upset several governments in the Middle East. That is a real issue as more cars and trucks move to electric power and natural gas remains a heavy alternative for heating in Europe and US.
Russia understands the long term need for oil globally is declining and will continue to decline over the next several decades. Russia is working to get as much as they can right now before every oil producing mg country realizes there is way to much supply and economies in trouble over declined demand.
Just a 20 percent drop in need may upset several governments in the Middle East. That is a real issue as more cars and trucks move to electric power and natural gas remains a heavy alternative for heating in Europe and US.
It's not just Russia. The Saudis will be ramping up production. They are all going to get into a deflationary price war that the USA cannot win.
But why did Trump supporters vote for Romney, McCain, Bush and Reagan if they really were so concerned about outsourcing and globalization? As long as people vote for corporate tools, you get exactly that.
Newsflash: Trump supporters never voted for Romney, McCain, Bush.
Nope. Low oil and gas prices end up stimulating all segments of the economy except the oil and gas industry. Everybody has more money in their pockets, it costs less to transport goods, it costs less for the power for our homes. I see this as a good thing-though I won't sell my energy stocks for a bit.
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