‘The Largest Economic Shock Of Our Lives’: Goldman Says Oil Demand To Plunge 25% Near-Term In ‘Game-Changing’ Crisis
Oil was already hurtling towards its worst quarter on record, but things got markedly worse on Monday, when futures in London cratered more than 9% and WTI fell as low as $19.92. Irrespective of how things pan out over Monday and Tuesday, this was a game-changing quarter for crude.
On Sunday, I spent a considerable amount of time discussing the unprecedented demand destruction associated with the draconian travel restrictions and lockdowns implemented globally to stop the spread of coronavirus.
This is interesting from about 5 years ago:
When you add in what he terms “headwinds” such as high government debt and an aging population, Gordon predicts that instead of potential GDP per person growing at about 2 percent per year (as it did during the big wave) growth will fall to about 1 percent per year.
This may not sound like much of a difference, but it means that instead of income per person doubling every 35 years (with 2 percent growth) it will take 70 years to double.
I’d put in link here, but apparently my smartphone can’t buffer copy/paste between open tabs. It’s about stagnation and exponential growth …
Meanwhile….. tenants placing calls, by the millions, to their landlords announcing that they will not pay rent (residential, retail and commercial office) on April 1. This is followed by outgoing calls from landlords to lenders, asking what the bank policy is going to be!
I guess lenders do not care because if borrowers do not pay, the bank will just get paid by the Fed. LOL