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Strategies & Market Trends : Winter in the Great White North

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To: marcos who wrote (8005)1/19/2016 9:41:24 AM
From: teevee  Read Replies (1) of 8273
 
in the mean time, crude expected to stay over supplied until 2nd half 2017.

rbnenergy.com

Banks are over a $trillion in exposure to energy sector lines of credit and are on the other side of most hedges. Will the markets experience deja vu when Yellen says something like "exposure to energy sector debt is contained" ? Then there are all the CDS and derivatives tied to energy sector debt. CDS and derivatives exposure is larger than back in '08 before the '09 "swoon"....we can all be certain the central banks will once again bail out their banks with QE to infinity. So far, all QE has caused is massive deflation due to cheap money resulting in over supply of soft and hard commodities, so I'm not too worried about more money pouring into the system. It is too bad that none of it trickles down to folks who need to replace all the good paying jobs that will be lost again. You and I can be certain the remedies won't change, as Stanley Druckenmiller, the billionaire hedge fund manager, labelled QE: “The biggest redistribution of wealth from the middle-class and the poor to the rich ever.”
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