Post 2008, the choice was reality or mass insanity. The trapped sheeple chose to rinse and repeat insanity. They weren't ready in 2008 for reality, and they just squandered another 8 years playing fake-believe all over again. This time they're fucked...
ZH: Sept. 4, 2016
When Oil Price Volatility Rises, the Capital Floodgates Open. Supply Increases. Prices Fall...
"Berman expresses dismay that the capital providers “haven’t wised up yet”. He observes that despite deteriorating fundamentals, if anything, credit appears to be increasingly available to E&P companies"
As investors continue to chase yield anywhere they can get it, the high-yield bond sector remains red hot, despite sharply higher risk levels.
Oil with junk bonds. The 2009 low in oil was retested, then the Spring rally, but the bounce is failing due to lack of demand...
Volume is from junk bonds
Oil with deflation aka. "demand"...
Berman shows that nation-wide crude oil inventories have actually INCREASED to the tune of 6.46mm barrels over the last 6 weeks, a period when inventory levels historically move in the opposite direction!
“This has really been a surprising development and this translates into really huge changes in comparative inventory...It also helps to understand how totally artificial this latest price rally has been about sentiment and hope that maybe OPEC is going to do something.”
“Buckle up for what’s coming”, as he predicts that the imminent shift from a seasonal de-stocking period to a seasonal re-stocking period will bring a series of markedly larger crude oil inventory builds.
Inventories:
