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Trump’s Latest Mexican Standoff And Big Banks’ Plan To Seize Oil And Gas Fields
After three days of negotiations, Mexico on Saturday had yet to completely acquiesce to demands the
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Trump can use the reimbursement from Mexico to pay for the WALL. In the future.
I’m guessing banks will seize smaller operations without sufficient cash and then big players will buy them from banks in a year or two when prices spike. Banks are unlikely to do much other than handling paperwork. Which means they’ll likely also need more bailouts.
The night the Russians announced an attempt to curtail US Oil Trump said nothing. I think Mexico agreed to be a punching bag at election time.
This is a weird deal by the banks. I do not see how it is beneficial to the economy if it not a bailout of the industry. Since you have defaulted on your mortgage we are going to take your property and pay you to manage it for us. It smell of fracking by products blowing on the wind. I see a pr campaign in the distance and why would anyone question how these banks have found themselves in such a mess again.
“Banks setting up independent companies to own the assets” …. unless the banks write down the value of the loans (assets to the banks) or the foreclosed assets- this is totally a sham.
If the “independent companies” are not consolidated on the balance sheets of the lenders- I will remain quite skeptical.
From “10,000 feet”, as Fauci said- the virus will set the timeline for a return to economic activity.
Based on the USA’s track record for the roll out of masks and testing (viral and antibody)– even if medical scientists develop a vaccine in 12-18 months, we have to hope the virus does not mutate and they have to produce enough vaccines and administer- probably not happening overnight.
Federal Reserve playing “whack-a-mole”, but with the tsunami of problems on the horizon, it seems like the Federal Reserve/government will run out of bullets before we are resurrecting our economy in a meaningful way.
Make sure you are sheltering in place with someone you might have to spend 24/7 with for the next 12-18 months. This could be amazing or very terrible!
Mexico could end up building the wall.
nice
In Southern California in 1993 or 1994, I used the phrase “Mexican standoff” in a conversation with a Latino co-worker. He promptly informed me that this phrase was derogatory and racially bias. I see it’s use in the heading to this article may in fact be literally correct…
Mexico hedges essentially its entire oil production. A recent Bloomberg article said that the hedge is probably at around $45. So Mexico has no reason to cut production. Trump can pressure Mexico via tariffs etc, Mexico can retaliate, its probably not a road worth going down.
If banks are going to seize defaulting oil companies’ production facilities and reserves, Treasury can do a deal to idle that production and produce the cut that the US agrees to make.