Monday, November 2, 2015

Enron x 1000. A Colossal Fucking Lie.

It's called "channel stuffing" i.e. selling merchandise to a wholesaler and bloating inventories, far beyond what can be cleared at retail, and of course booking the sale. 

It's what's happening to oil right now on an historically unprecedented scale as every land-based and sea-based tanker facility on the planet is now being filled.

Oct. 31, 2015
Crude Supertanker Rates Collapse As VLCC 'Traffic' To China Lowest In 13 Months
"A few days ago we warned, confirming Goldman Sachs' earlier analysis that the world was running out of space to store crude distillate products" 

Human history's largest channel stuff visualized:
U.S. oil inventories (red) with prices (black)
What is going to happen to the price when oil can't be sold in the futures market anymore and stored in tankers?

And then of course there's this chicanery meant to cover up falling revenue...

"Corporations were shocked when jobless consumers stopped buying their cheap junk from China marked up 10x"

All Retail / Consumer Discretionary 
aka. Middle class retail / iGadgets

And just as a polite reminder of what happens to stocks when gamblers realize companies have been channel stuffing...
Valeant Pharma

Value Line Geometric Index

"Dude, settle down, it's just data"