Wednesday, February 18, 2015

Losses are going to cascade through the system

A “subprime” oil crisis may be looming. If so, shale oil companies and the banks that lent to them will be ground zero. Your 401(k) or pension plan will be the aftermath. And the poisoned fallout will radiate throughout the economy.

“Losses are going to cascade through the system,” says former CIA financial analyst Jim Rickards. “There are unforeseen consequences and hidden losses. I am not so sanguine that this is going to work out so smoothly in the end .… This looks like the beginning of [a crisis].”

These wild gyrations in the price of oil have real-world effects on world economies. Everyone in the sector is stung.

- Source, The Trumpet