Posted on 03/09/2020 11:41:24 AM PDT by Enlightened1
Stocks cratered Monday as investors grappled with the sinking price of oil and the spread of the coronavirus.
The Dow Jones Industrial Average tanked 2,043 points, or 7.9%, on pace for its worst day since December 2008. The S&P 500 plunged 7.5%. The massive sell-off triggered a key market circuit breaker minutes after the opening bell. Trading was halted for 15 minutes until reopening at 9:49 a.m. ET.
The sharp declines followed a roller-coaster week that saw the S&P 500 swing up or down more than 2.5% for four days straight. While Monday’s drop was significant, it still didn’t crack the 20 worst days for the S&P 500.
(Excerpt) Read more at cnbc.com ...
Generally low energy prices are good for the economy. The fear is that a bunch of oil companies will be unable to pay their debt. They borrow a ton of money to finance their oil wells.
At $60 per 750ml bottle, that's $80 per liter. A 225-liter barrel would cost $18,000.
At $75 per 750ml bottle, that's $100 per liter. A 225-liter barrel would be worth $22,500.
A $22,500 barrel of wine is 750x more expensive than a $30 barrel of oil. Or would be, if the relative barrel volumes were the same.
Normalizing:
One gallon of $100per-liter wine = $378.54
One gallon of $30-per-[42-gallon]-barrel oil = $0.7143
At these prices, one equal-volume unit of wine is 529.96x more expensive than oil.
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