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President Trump: The NEW one and only politics thread

Discussion in 'Sports and News' started by Moderator1, Nov 12, 2016.

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  1. Regan MacNeil

    Regan MacNeil Well-Known Member

    Gotta use the bladder system. Anyone got some giant rubber balls?
     
    Regan MacNeil, Apr 20, 2020
    #171397
    HanSenSE, Mngwa, Fred siegle and 1 other person like this.
  2. Inky_Wretch

    Inky_Wretch Well-Known Member

    Hey @The Big Ragu how disconnected are the paper markets from real life in gold and silver now. I'm not finding anything near LIBOR and a lot of wholesalers don't even have any physically on hand.
     
    Inky_Wretch, Apr 20, 2020
    #171398
  3. Michael_ Gee

    Michael_ Gee Well-Known Member

    Josh Barro of New York magazine says that oil producers should pay the refiners, who should then pay retailers for delivering gasoline, who would then pay motorists for filling their tanks. We could all make money just driving around.
     
    Michael_ Gee, Apr 20, 2020
    #171399
    HanSenSE and Fred siegle like this.
  4. Baron Scicluna

    Baron Scicluna Well-Known Member

    Newspapers should take the oil. They should have plenty of room to store it in empty pressrooms and empty newsrooms.
     
    Baron Scicluna, Apr 20, 2020
    #171400
    HanSenSE, Donny in his element and OscarMadison like this.
  5. The Big Ragu

    The Big Ragu Moderator Staff Member

    Actually between $35 and $40 a barrel at the moment.

    To give some perspective, though. ... If you started the day long just one May contract, which is not a huge trade. ... Your overnight maintenance margin requirement would have been $7,500, I believe, without checking. In another words, you just needed $7,500 to control your 1,000 barrels of oil.

    If you fell asleep and woke up just now? You have a margin call of about $45,000. You need to come up with that money now.

    Most brokers will sell you out before it gets that bad, depending on their own intraday margin requirements. But the market was so illiquid -- there were no buyers, which is why the price got so negative -- that the slippage from when they probably started to liquidate you to where you got out means you got killed.

    Mind you, that is if you are just trading a single lot -- one contract. At least a few moderately-capitalized traders just got run over by a locomotive. Most people weren't messing with it and had rolled over their contracts days into a future month days ago, so I don't want to completely overstate it. But still.
     
    The Big Ragu, Apr 20, 2020
    #171401
  6. Neutral Corner

    Neutral Corner Well-Known Member

     
    Neutral Corner, Apr 20, 2020
    #171402
  7. goalmouth

    goalmouth Well-Known Member

    Most locomotives run on diesel, so there's your pyrrhic victory.
     
    goalmouth, Apr 20, 2020
    #171403
  8. Neutral Corner

    Neutral Corner Well-Known Member

     
    Neutral Corner, Apr 20, 2020
    #171404
  9. The Big Ragu

    The Big Ragu Moderator Staff Member

    VERY disconnected. As you said, good luck finding any physical gold at the moment, especially at the price they have been quoting in London. Who knows what the real price of an ounce of gold is at the moment? You'd have to find an actual market to do that transaction.

    It was looking like a real problem last week. The last time the premium between NY Comex gold for delivery and London spot gold blew out to where it was was in the 1980s when the Hunt brothers tried to corner the silver market and gold futures spiked higher.

    The Federal Reserve has destroyed our markets. There is no honest price discovery anymore. The ramifications for the average person are devastating. Most people don't understand it, unfortunately.
     
    The Big Ragu, Apr 20, 2020
    #171405
  10. Twirling Time

    Twirling Time Well-Known Member

    Looks like WTI finally found someone to take the oil off the market's hands. It's inching back up over -$20 now.
     
    Twirling Time, Apr 20, 2020
    #171406
  11. 2muchcoffeeman

    2muchcoffeeman Well-Known Member

    An explanation:



    An additional explanation:

     
    2muchcoffeeman, Apr 20, 2020
    #171407
  12. The Big Ragu

    The Big Ragu Moderator Staff Member

    That just blew up an old trope about how if you got short, your risk is unlimited (the price can go to infinity), but if you go long, your risk is defined (because presumably the price can only go to zero). Even taking into account the storage costs underlying what happened, we still saw something kind of unthinkable today.
     
    The Big Ragu, Apr 20, 2020
    #171408
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