DEBRIS SCATTERING: Oil Taken Prisoner – SHOCKWAVE SPREADING - financialanalysis


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Thursday, April 23, 2020


Retail Speculators Just Got Wiped Out

Yesterday was ANOTHER HISTORIC day for the global economy in a totally NEGATIVE WAY. The price of oil, which was already HORRIFIC after the glut that has emerged because of GLOBAL SHUTDOWNS, has now morphed into a MONEY ON THE FLOOR opportunity.

This is a full-blown crisis, costing retail speculators $1B when they believed they could TIME THE BOTTOM, when it traded for $10-$15/barrel.

Those investors are down 100%, EVEN if they weren't LEVERAGED!

As opposed to stocks – which the Federal Reserve and the government can RIG and TWIST using their UNLIMITED CREDIT tools – oil is a commodity. It isn't under the control of anyone, so it is NEXT TO IMPOSSIBLE to fix the situation by having a central bank buy oil contracts.

In other words, the oil price ARMAGEDDON can only be solved by having the largest producer nations agree to supply cuts, the biggest ones in history and to RE-OPEN the economy NOW!


None of us has ever FACED a situation in which our profession is SUSPENDED, while other businesses are able to FUNCTION properly and grow even bigger; it's an UNFAIR money heist, a government-led BUSINESS BANKRUPTCY operation.

Around the globe, people are getting frustrated, mad and they're ready to take it to the streets.
Parents are scrambling to find ways to feed their children. Millions of renters and mortgage-payers are not able to MEET OBLIGATIONS.

This is draining people of their zest and vitality – they are being pushed TO THE EDGE!

It's one of the TOUGHEST, most challenging realities that the developed world has ever been through. Families are hurting.

There's NO PLAYBOOK for what's happening, at the moment. CEOs are engaged in SURVIVAL.


This is a depression. The Federal Reserve indices are showing it and WE ALL FEEL it.

Income levels are down, liquidity in the market is DRIED-UP altogether, and businesses are closed every which way. Our way of life has COMPLETELY CHANGED and now we'll go through a PAINFUL re-opening.

I expect the next 18 months to be ABSOLUTELY DREADFUL for most.

Personally, I'm taking this period and making it a LEARNING OPPORTUNITY, a way to re-assess my priorities and my mission in life.

My daily routine always begins with going over my PRIMARY LIFE PRINCIPLES.

No matter how I size things up, this is A WEIRD depression, since we FORCED it into existence with our own hands.

Therefore, many COMPARISONS to previous meltdowns won't hold up.

None of us has lived through a period of time when seeing family and friends was FROWNED UPON, when producing value and servicing clients was forbidden or restricted, and when parents were responsible for their children all day long, instead of the government education board.

Hundreds of millions, even billions of individuals, now look to their governments for help.

Governments have TAKEN OVER and we have to learn how to ADAPT.


All of the FED branches are PUBLISHING distressed economic conditions.

The questions to be asking right now are:
  1. How long is this process of returning to full capacity going to take? 6, 12, 18 or even 24 months and do we have PROPER SAVINGS, or should one even explore the possibility of RELOCATING, temporarily, to a different country.
  2. Will the economy be different than before? In what ways? Are some industries going to be PERMANENTLY hurt? What segments will prosper?
  3. How will central banks and governments UNWIND their balance sheets and their national deficits? What will that do to asset prices?
Yesterday and today, gold MOVED UP, even in the face of oil's MASSACRE and in spite of the market's ERRATIC price action.

I've never seen gold this strong before; an ounce of silver is now 1,500% more expensive than a barrel of oil!

We live in a mad reality.

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