The biggest issue for me is that if oil companies like bp, bhp and numerous U.S. companies that are in huge amounts of debt, will have to write off their losses. If they go belly up and pay their creditors 10c in the dollar, and those creditors are banks, who will bail them out this time..
The gfc took out any kind of reserves that the world had as a buffer to support any country to get itself out of trouble.. That means that first world countries may go belly up just because they are already in too much debt.. Now if that's some of the U.S. Banks, the U.S. Financial markets may crash into depression.. All just my opinion and I am certainly no expert.. But where do they go if it all hits the fan.. I hope it doesn't and my money is in the market so I don't think it will..
But as a worst case scenario, this could be the way of it.. Alternatively someone gets so annoyed with the saudies that they decide to fire a missile at their wells and war begins...
Wasn't oil what started the last 2 world wars??
It may still take a few months but I recon someone will cut production soon..
I hope...
Please...
CVN Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
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