Business, Economics, and Taxes: Capitalism. Yay? >=(

[Kepler]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

Went down to $1.25 for a second.

Now $1.12.

Does it asymptotically approach $0 or just blow through it?

 

[MissThundercat]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

A lot of people though, the poorer and those working menial jobs, won't have any options to avoid the virus though. Boss says get back to work, they have little choice in the matter.

Probably all part of "the plan" as well.

Throw people like me out there so they don't have to deal with it. Yep.

Also with Door Dash and Instacart, acceptance rate doesn't matter. I've learned if I turn down a $3 order, a $8-9 order will pop up.

 

[Kepler]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

Throw people like me out there so they don't have to deal with it. Yep.

Oh, Michiganers aren't that bad.

 

[Spartanforlife4]

Does it asymptotically approach $0 or just blow through it?

$1 appears to be the floor. It’s hovered there a couple times before bumping back up.

Never mind, now it’s at $.90

Now down to a penny.

 

[unofan]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

Does it asymptotically approach $0 or just blow through it?

Since it appears it's being driven by storage limitations, I would assume it could blow through it. The cost of being stuck holding it (and having to accept delivery) would be higher than paying someone else to take it.

 

[aparch]

Does it asymptotically approach $0 or just blow through it?

CME trading said it could go negative.

The contract ends tomorrow, but (from what I'm learning on the fly from CNBC) it can still be traded the rest of the month.

They're saying that normally, dips (not this extensive) would lead to companies paying people to take it, just so they don't shut the well head down. Shutting down a well head temporarily can cause damage to the well head.

They're speculating that there could be some well heads that will shut down do see supply meet demand, despite damage to well structures.


Speculation might be that oil prices will continue to crater until mid-May when a rebalancing of supply-vs-demand is necessary. A dip, with a quick rebound would be more disastrous in trying to restart these wells.

 

[aparch]

Since it appears it's being driven by storage limitations, I would assume it could blow through it. The cost of being stuck holding it (and having to accept delivery) would be higher than paying someone else to take it.

Precisely what the CNBC discussion has been.

 

[Spartanforlife4]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

We are now in the negatives. And just dropping. Now at -1.43

 

[Kepler]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

We are now in the negatives. And just dropping. Now at -1.43

Where do you see the May contract price? I still see it as $5.

 

[aparch]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

CNBC says they just closed. Negative $35.

Every contract is 1000 barrels. This is them paying $35k to take a contract order in May.

CNBC has a rep who speculates that there seems to be a problem in the trading system. It appears there was a flash crash at the end.

 

[Spartanforlife4]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

WTI crude for May closes at -35.20. Essentially giving away 1000 barrels for 35k per contract.

Although now it just corrected to -28.00 so I’m a little confused.

 

[Kepler]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

Apparently Dump ordered the strategic petroleum reserve filled when the price was $35. Could have made a killing now at -$28. 750M barrel capacity in those salt caves. $21B would have bought some PPE; plus, free oil.

 

[aparch]

Apparently Dump ordered the strategic petroleum reserve filled when the price was $35. Could have made a killing now at -$28M. 750M barrel capacity in those salt caves. $21B would have bought some PPE; plus, free oil.

The great negotiator...

 

[FadeToBlack&Gold]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

Apparently Dump ordered the strategic petroleum reserve filled when the price was $35. Could have made a killing now at -$28. 750M barrel capacity in those salt caves. $21B would have bought some PPE; plus, free oil.

The paradox is that if he'd managed this properly, the demand for oil wouldn't have crashed as hard as it has.

 

[Kepler]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

I was wondering why the oligarchs who own Russian energy companies haven't assassinated Putin. It's because the kleptocracy baked all this in. Their profits are guaranteed by the government and their taxes drop with the oil price.

That's what Cheney would have liked to do here.

 

[aparch]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

We still have one more day of trading of the May Oil Futures contract. Could swing wildly either way tomorrow still.

 

[dxmnkd316]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

Wait, holy ****. Oil dropped $52 (-285%) to -$33.75? That's... holy f--k.

 

[St. Clown]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

For the investors out there, now is the time to look into oil drilling company stocks. It’s Buffet time.

 

[Handyman]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Four major U.S. banks were sued by small businesses that accused the lenders of prioritizing large loans from the virus rescue package and shutting out the smallest firms <a href="https://t.co/iI6KJlAXd8">https://t.co/iI6KJlAXd8</a></p>— Bloomberg (@business) <a href="https://twitter.com/business/status/1252310084052533280?ref_src=twsrc%5Etfw">April 20, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[ScoobyDoo]

Re: Business, Economics, and Taxes: Capitalism. Yay? >=(

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Four major U.S. banks were sued by small businesses that accused the lenders of prioritizing large loans from the virus rescue package and shutting out the smallest firms <a href="https://t.co/iI6KJlAXd8">https://t.co/iI6KJlAXd8</a></p>— Bloomberg (@business) <a href="https://twitter.com/business/status/1252310084052533280?ref_src=twsrc%5Etfw">April 20, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Anyone shocked by this news? Anyone?