Yes - the banksters and the oil cartels have been screwing everyone over for years with high prices. I read that oil could even go as low as $25. A combination of the Saudis trying to crash Iran's economy, more oil on the market due to US fracking, and possibly US policy to try and crash Russia's economy is causing this massive price drop. The consumer (and I as well) are enjoying it.
I do see it, however, crashing the world's markets. The energy companies owes banks Billions, and will default if the price stays low enough for long enough. The Saudis just announced there is no way they will cut production. Venezuela's Marxist/Communist government is collapsing as I type this. The junk bonds and energy stocks will collapse very soon unless the price goes back up, and I don't see that happening right away.
The energy companies owes banks Billions,
And so does EVERYONE else, when the Banks finish stripping the assets from the people as a result of this, the price will go back up. Then we will do it all over again,and again,again...
This looks like a lot of fear mongering about nothing. Some high yield bonds issued by some oil patch companies will default. Junk bonds are risky, that’s why they have a high yield in the first place.
I fail to see how that is going to bring down the world economy. The majority of the world doesn’t own high risk, high yield junk bonds but they do benefit from lower energy costs.
This is hardly comparable to the housing bubble when trillions of dollars of high risk paper was misleadingly rated AAA. Investors who bought the high yield energy sector junk bonds knew that they were taking a risk, this wasn’t the case during the housing bubble.
No these are the same people who were quacking about peak oil a short time ago. Petroleum based products from jet fuel to plastic bags to coat hangers will come down in price. Yes there will some deflationary pressure which is good but no crash