If I were Trump, I'd "bailout/stimulate" shale producers.

Discussion in 'Commodity Futures' started by IAS_LLC, Mar 9, 2020.

  1. IAS_LLC

    IAS_LLC

    I agree with you, but I worry about more than first derivative effects with this one. Banking scares me.
     
    #11     Mar 9, 2020
  2. S2007S

    S2007S

    Just shows you how every industry is over leveraged, always great in the good times but down right nasty in times like this.....
     
    #12     Mar 9, 2020
    IAS_LLC likes this.
  3. S2007S

    S2007S


    If you only knew what the derivatives market entailed. That's another entity in itself, if that market went upside down the entire world would be in a gigantic deep dark cold depression for years!!!!!
     
    #13     Mar 9, 2020
  4. IAS_LLC

    IAS_LLC

    Oh I get it. Hard reset.
     
    #14     Mar 9, 2020
  5. wartrace

    wartrace

    Let them fail. Capitalism 101. Let me guess; you are long oil equities? :D
     
    #15     Mar 9, 2020
    Cuddles likes this.
  6. IAS_LLC

    IAS_LLC

    I have far dated crude contracts, as of today, in one of my discretionary accounts. No direct equity exposure, outside of s&p 500.
     
    #16     Mar 9, 2020
  7. wartrace

    wartrace

    So you would like the taxpayers to bail you out? I assume you are long crude oil and are worried your "far dated" contracts were a bad trade? There is risk in holding futures contracts overnight.
     
    #17     Mar 9, 2020
  8. bone

    bone

    Shale producers already get tax break incentives via the MLP partnership structure.

     
    #18     Mar 9, 2020
  9. IAS_LLC

    IAS_LLC

    I'm not at all worried. If it ends up being a bad trade...owell. I'm not even negative on it yet (i do expect to be in the near term). I have more than enough to cover the trade, and many like it, even if oil goes to zero. This is just another trade...one of the hundreds I make every day. But admittedly one of the few I take with a long term bias.

    All of that to say...this thread has nothing to do with my own positions. I just think it would be an interesting geopolitical strategy to counter Russia. Conversation.

    The way I see it...crude is going to rebound one way or another. The question is when, and how deep of a gash do the low prices cause to u.s industry
     
    #19     Mar 9, 2020
  10. Bobbybax

    Bobbybax

    So the cure for low oil prices is increased production?
     
    #20     Mar 9, 2020