In this week's Off The Cuff podcast, Chris and John Rubino discuss:
- It's Looking Like 2008 All Over Again
- Liquidity is drying up & the banks are weakening fast
- Oil At The Epicenter
- The ripple effect of the losses will be wider than anyone expects
- Financial Sector Leading The Way Down
- The banks are getting hammered for their loan exposure
- Gold Set To Shine Again
- Will 2016 finally see a safety-driven rebound?
Vexing to many of the pundits predicting a snap-back rally, the market carnage from last week has continued into this one. Low prices are going even lower: for domestic stocks, for emerging markets, for oil.
Leading the charge downwards in the equity markets are the banks. The sector is getting hammered for its loan exposure — right now, investors are worried about potential losses in their portfolio of debt extended to energy companies. With the coming write-offs from that sector, losses could be well into the tens of billions.
And of course, the damage won't end there. The industries and regional economies that service the energy sector (particularly the shale drillers in the US) will experience a lot of collateral trauma. So the hits are still to come…
Liquidity is beginning to dry up, and investors have suddenly turned from net buyers to net sellers.
by kennethpollinger