Trump Proposes Executive Order To Fund Oil/Gas Companies Which Will Depress Oil Prices More

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Zero Hedge: Another industry in trouble, another government intervention, but this one will have serious negative consequences.

Amid a collapsing oil curve, and the beginning of bankruptcies across the energy states, President Trump has unveiled a new executive order to save them all:

We will never let the great U.S. Oil & Gas Industry down. I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!”

What is perhaps misunderstood once again is the ‘unseen’ – the fact that enabling these zombie firms to live longer and produce more oil will merely exacerbate the oil glut and drive prices even lower, leaving Trump open to ever increasing bailouts before the bullet has to be bitten. Read More …

Opinion: Take it away, Pete Seeger…

“Where have all the flowers gone? Long time passing
Where have all the flowers gone?
Long time ago
Where have all the flowers gone?
Girls have picked them every one
When will they ever learn?
When will they ever learn?”

Nobody is allowed to go bankrupt anymore, period! When will we will ever learn? The global economy is now completely addicted to money printing and debt.

“And if a bunch of hedge funds get wiped out – what’s the big deal? Let them fail. So they don’t get the summer in the Hamptons – who cares.”

The quote is from our post April 13. Economist Chamath Palihapitiya said these words and added this:

“This is a lie that’s been propagated by Wall Street. When a company fails, it does not fire its employees…it goes through a packaged bankruptcy…if anything, what happens is the employees end up owning more of the company. The people who get wiped out are the people who own the unsecured debt and the equity…but the employees don’t get wiped out and the pensions don’t get wiped out.”

Had the US allowed the too-big-to-fail banks and car companies to file bankruptcy in 2008, US debt would not be near $24 trillion today. Most of those companies would still be in business, the employees still employed, and the US economy better able to withstand even Covid -19.

Instead our deficit is $3 trillion and counting, and shale drillers are still pumping oil. How long can the dollar hold up?

Man lighting 100 dollar bill on fire.