Massive Reversals abound in the market. This is an update from my previous post entitled Something Has Got to Give
It's amazing how quickly things can change in the market. Direction, Sentiment, Trend, P&L. Investors are the most fickle creatures on earth. There is safety in numbers. Oblivious, the masses congregate amongst themselves, lavishly rubbing each others backs, basking in the glory of their genius investing acumen and mountainous QE gains.
However, those in the middle of the herd cannot see the stragglers on the fringes who are systematically being taken down and feasted upon by the predators surveying the irrationally exuberant orgy of blind foolishness from the bushes.
As the speed of global economic growth begins to stall and recess, the price of oil is crashing.
Many nations, especially those in the 'emerging' markets are dependent on expensive oil to fund their government and are being thrown into turmoil by the commodities collapse. Venezuela is a prime example of this. The nation is imploding upon itself with great social unrest. Rolling blackouts begin to strike. The citizens are going through a great depression in their own right as their currency inflates and lines for government sponsored food programs grow longer by the day.
This is the picture of hyperinflation; a horrific danger inherent in any unbacked fiat currency monetary system.
However, those in the middle of the herd cannot see the stragglers on the fringes who are systematically being taken down and feasted upon by the predators surveying the irrationally exuberant orgy of blind foolishness from the bushes.
As the speed of global economic growth begins to stall and recess, the price of oil is crashing.
Many nations, especially those in the 'emerging' markets are dependent on expensive oil to fund their government and are being thrown into turmoil by the commodities collapse. Venezuela is a prime example of this. The nation is imploding upon itself with great social unrest. Rolling blackouts begin to strike. The citizens are going through a great depression in their own right as their currency inflates and lines for government sponsored food programs grow longer by the day.
This is the picture of hyperinflation; a horrific danger inherent in any unbacked fiat currency monetary system.
This destruction of the energy sector is being touted every single day on CNBC as some sort of brilliant 'gift' and 'tax cut' to the consumer by Fat Cat CEOs who are completely out of touch with reality. These people are so delusional and oblivious to the struggles of the every day man that they have convinced themselves into thinking that saving $20 a week on gas is actually going to substantially help the Average Joe.
Tell that bullshit to the poor guys who are going to lose their jobs as the Bakken goes bankrupt.
Tell that bullshit to the poor guys who are going to lose their jobs as the Bakken goes bankrupt.
Current Prices 12/13/2014
The energy sector has been dropping for quite some time but as the fallout contagion spreads, people are only now beginning to wake up. Strap in and Good Luck!
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