Think again

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Avatar for Ekpocha
3 years ago

Are you going to have a piece of the trillions of dollars being pumped out right now?
The health crisis in the world right now won’t last much longer. But the economic impact would just be starting. There are people still hoping that the economy will bounce back to what it was before naturally. And it very won’t.
Don’t expect to see a U-shaped recovery. If you think the markets are down primarily because of the pandemic, you need to think again.
Currently, oil is less than $26 per barrel. This is another full-blown crisis. But it is being overshadowed by the pandemic. And with about 2 thirds of the market of oil being grounded because of the viral outbreak, the price of oil might even go lower.
The oil bankruptcies are starting to pile up, even as most of the oil bonds are due to mature between 2020 and 2024. And there will be more from around the world over the coming weeks and months.
But in the midst of this, we have the central banks who have ultimate power over the economy and financial markets. The central banks have minds of their own and respond however they choose to.
In the US, the Fed is embarking on a quantitative easing program injecting over $700 billion into the economy. A stimulus package of $2.2 trillion has also been signed. But will it help revive the economy?
Not really. You can take the lesson from 2008. The same thing that happened then will happen again. The money will concentrate very quickly in the hands of the few. And they will be very rich.

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Comments

Need to do something about this by power vs. force

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3 years ago