Yeah, they are convening as we speak. Never fear. Trust in your government, not your 401k.🤪
A Minsky moment, day, week, month or year(s). Aka margin call on highly leveraged margin is probably the cause. Hence, duck it’s hitting the fan.
In other words, if you have to sell those paper barrels for margin calls, and there is too few to buy, because they are selling, also; then price goes down, because there are too many paper barrels, and not enough buyers. Probably, the original paper sellers lose their butt, and have to sell something to cover their margins. Everyone now is paying homage to the margin god. Because, there was never any real money to cause the stock market to soar like an eagle.
Which reverses itself later, because when it is time to sell new paper barrels, less are sold, enabling the price to go up (if anyone has any money left). Everyone else is busy ducking Guido, because the value of what they had left in their portfolio was not enough to cover margin. Er, I think🤡
Anyway, that’s Guy’s course negative 101, on the current status of oil prices.