$30 breached, spread wiped out completely. GBP/USD down from 1.55 to 1.43 over the last 90 days.
Brent futures faring little better, -4.6% to $29.47 a barrel (WTI/Brent spread disappears) https://t.co/paGZJQ0jWn pic.twitter.com/eifBDwQw25
— Bloomberg Markets (@markets) January 15, 2016
1 comment:
I'd propose price floors for domestic producers in various countries (China, Argentina) will actually lower worldwide prices as it will keep production online that would otherwise go offline.
In terms of the stock market, I'd once again propose we are witnessing the standard two term presidential curse. Look at a chart of past 2 term presidents and there seems to be a trend where lame duck leads to change of party occupying white house helped by a recession or market downturn. Perhaps lame duck leads to gridlock and a general lack of deficit spending?
Or, as economic understanding of fiat money spreads, the knowledge of how to manipulate politics through economics is becoming stronger. Saudi Arabia has a huge incentive to get a Bush back in the White House. The oil price lever may be able to fineness a change in part but not likely to pick a particular candidate.
Really wish Mike was on board. I'm not sure where he gets his info, but many of his calls seem to come from the financial sector 'buy SP500 on dips' , 'oil has bottomed'.
The world is short dollars despite 'huge increase in deficit coming in 2016'.
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