anyone else come to the the conclusion this pandemic is essentially a no-win situation???
basically there are choices BUT no choice leads to an obvious net gain, so the best approach is to look for ways to mimimize losses and/or look for unconventional alternatives?!
IOW collectively we’re stuck between a rock and a hard place, so because we’re all interdependent meaning all the money in the world is useless if ya can’t buy anything (for example if food production labor gets sick and supply chains completely break, basically having more money is useful up until the point there is no more food, don’t think it will ever get to this point but hopefully ya get the idea)
thought I’d point this out because locally we see,…
[quote] County Unemployment Numbers Pass Great Depression Levels
The San Diego region’s estimated unemployment rate has risen to 26.8% amid the coronavirus pandemic, a high not seen since the Great Depression, according to a report released Wednesday by the San Diego Association of Governments.
The report was prepared with data from April 18-25, before Gov. Gavin Newsom issued an order to open some retail, manufacturing and logistics businesses this Friday.
BTW w/ cushing OK, along w/ other oil storage tanks almost full, and w/ the USO “etf” restructured w/ four month contracts to try and keep the shale producer wells open (because if those wells are capped its going to be really hard to restart production), have ya ever thought about the global equity and capital market implications???
IOW the USO “etf” might go to zero because it acts like a stock, but the future contracts act like a credit default swap (w/ in the “etf” ) so have have to wonder who is going to eat the financial losses??? AND another big unanswered question is are there credit default swap derivatives on the future contracts (which would only magnify the problems)
The United States Oil Fund, or USO, is an exchange-traded fund, or ETF, that is designed to track the daily price movements of West Texas Intermediate, or WTI, light, sweet crude oil. The firm’s website describes the investment objective as, “daily changes in percentage terms of its shares’ NAV to reflect the daily changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in price of USO’s Benchmark Oil Futures Contract, less USO’s expenses.”
The ETF was doing a very good job of that until April when the oil market became very oversupplied due to much lower demand and the supply spigot not reacting fast enough. Due to the rapid fall in oil prices the fund has fallen substantially and underperformed its objective. Last Tuesday it affected a reverse 1 for 8 split, which is never a good sign for an investment.
[quote] Credit Suisse Lures Traders to an Oil Bet Linked to USO
Credit Suisse Group AG is doubling down on an oil trade linked to a fund at the epicenter of the historic price crash.
The Swiss bank is cashing in on the infamy of the U.S. Oil Fund LP, known as USO. It’s issuing fresh shares in a note that lets clients bet the $4 billion product will see calmer days after its 80% plunge this year.
Using what’s known as a covered-call strategy, the X-Links Crude Oil Shares Covered Call exchange-traded note, ticker USOI, is structured to outperform if USO stays locked in sideways trading. A prospectus published last week showed the bank is adding 2.2 million shares, worth $54 million at their stated principal amount. The note’s indicative value on that date was around $4 a share, which would make the offering worth around $9 million.
The world’s largest oil ETF captured headlines last month after retail investors got burned with ill-timed bets on a crude rebound. Amid negative prices, USO was forced to re-tool its methodology and took other extraordinary steps to prevent shuttering.
