OIL PLUNGES BELOW $37; FUTURES PLUMMET

Oil is down below $37 per barrel now, sending oil stocks down the toilet again. CDS for many distressed oil companies, like CHK, are blowing out. Debt to equity levels are getting dangerously high.

This is going to lead to a liquidity event that will cascade into the market and ravage everything in its path.

According to Exodus, there is over $267 billion in debt assigned to companies whose debt to equity levels are over 5x.

Under 5x, there is approximately $1.82 trillion in debt (lolz). Of the $1.82t, there are many billions of dollars in debt becoming distressed. By distressed, I mean companies who will find it increasingly difficult, or impossible, to tap equity markets for capital.

This is how a crisis begins.

SPY futs are off by 16, after fair value considerations.

Twitter is an awesome tool, shitty business, if you know how to use it. After the close yesterday, the entire fucking Boston College (Harvard rejects) basketball team, 20 in total, claimed to have contracted e-coli after eating at Chipotle’s.

This is the absolute worst food crisis to hit any casual food chain ever. Even more, it’s a punch to the gut to all the hipsters who praise CMG for their ‘natural food’ sources. Meanwhile, MCD is cranking out absolute shit; but no one gets sick from it because MCD is a fucking machine that does one thing near perfect. And that is ‘quality control’, something CMG, obviously, is having a very difficult time getting a handle on.

Back to Twitter. I did a simple keyword search “I got sick” Chipotle and was shocked to see dozens of people claiming to have gotten ill after eating there. The thing about contracting e-coli sickness is most people don’t report it. They simply suck it up, drink lots of fluids and hope that it goes away without a trip to the doctor.

After seeing the tweets that I am about to show you, I believe shares of CMG are in for a world of pain. Now that reporting e-coli sickness from CMG is fashionable, everyone is going to be doing it now.

Clearly, the amount of incidents is being grossly under-reported.

Fuck, ban everyone. What the hell do I care? At this stage, I’m like Bill the Butcher from Gangs of NY, totally pissed off at all of the newcomers coming off the boats, fucking with my country.

The best part about Trump, for me, is how opposite he is from Obama. Being that he’s self funded, NYC based, he is a liberals worst nightmare.

Let me not confuse any of you out there, thinking that I support the GOP. I do not. However, I must admit valuing entertainment traits in my politicians above all other qualities.

Why?

Because in my experience they’re all shit and only lead to disappointment. With Trump, I get a true comedian and someone who is solely interested in what’s good for America. I don’t know about you, but with Obama and the dem-GOP control apparatus, I feel as if a foreign government is in control of the country, placing foreign interests way ahead of national ones.

One day removed from our Liberian homeland security chief, AG and POTUS calling for tolerance with regards to islam, we get this.

Zero fucks given.

An old Jim Cramer fav, KMI, has been getting its fucking brains bashed in, over the past three weeks.

As the price of oil drops, calls for KMI to slash its dividend heighten.

Here’s a data dump of some research out tonight.

I know dividend cuts for pipeline companies is blasphemy. But this stock is getting shot to hell. Something needs to be done to firm up the balance sheet to make sure KMI can live to fight another day. Clearly, management has their heads up their collective asses and they haven’t been able to assuage the panickers.

Throw the kitchen sink: cut the divvy, conduct business and when things firm up, hike it up again.

The government modus operandi is to downplay every single attack, hiding the truth of virtually every single aspect of islamic terrorism perpetrated on U.S. soil. Last week after seeing there was more than one shooter, I immediately connected the dots to islamic terrorism–all the while the media, incessantly, tried to pin it on ‘work place violence’. There was even some people on Twitter who challenged my view that it was muslim extremism to blame.

The government controlled media is constantly asking the public “why did this married couple with a 6 month old baby committ these heinous acts?”

Trying to understand the savage is your first problem. It’s like trying to understand why a lion hunts and a homeless man drinks himself to sleep every night. A savage is a savage because that’s what he is. Our time would be better served trying to decapitate the savage, take away his resources, and annihilate him, than understanding his psychological profile.

There is a Facebook post circulating the internet from a friend of one of the slain in San Bernardino. Read it for yourself.

So why isn’t the media discussing this topic?

Because it’d paint the terrorist as the islamic extremist that he was, something the government is desperately trying to avoid.

How do I know this?

Since 9/11, this country has been incredibly tolerant and accepting to muslims. There isn’t this giant backlash against muslims that would require a lecture from the President, during a prime time address from the oval office. But that’s exactly what we got. Over the past three days, AG Loretta Lynch, President Obama and the head of Homeland Security, Liberia’s own, Jeh Johnson, have all warned us about hate speech against muslims.

What the fuck?

You people are literally out of your minds for believing this is an appropriate response, climate change and islamophobia, post San Bernardino.

By the way, look at the sort of elephant shit that is coming out of the mouth of Syed Farook’s insane father.

In Sunday’s La Stampa (link in Italian) report, Farook said, “My son said that he shared [IS leader Abu Bakr] Al Baghdadi’s ideology and supported the creation of the Islamic State. He was also obsessed with Israel.”

“I told him he had to stay calm and be patient because in two years Israel will not exist any more. Geopolitics is changing: Russia, China and America don’t want Jews there any more. They are going to bring the Jews back to Ukraine. What is the point of fighting? We have already done it and we lost. Israel is not to be fought with weapons, but with politics. But he did not listen to me, he was obsessed,” Farook explained to US correspondent Paolo Mastrolilli.

Farook’s son is suspected of carrying out a mass shooting that killed 14 people in San Bernardino. The father was interviewed in Corona, California, where he lives with his older son, Syed Raheel Farook, a US Navy veteran.

Farook senior was born in Pakistan and arrived in the US in 1973. The family has been described by many as very integrated in American society, almost the embodiment of the American dream.

Farook told La Stampa how, once in the US, he got a degree in engineering and started to work hard to guarantee his children “an education and the opportunity to succeed in life.”

Other reports told a more nuanced story: Farook split from his wife Rafia, also Pakistan-born, who filed for divorce in 2006 and, according to The New York Times, said her husband was violent and an alcoholic and beat her and the children.

In the La Stampa interview, Farook denied the accusations, saying that “Rizwan’s mother is very religious, as he was, and they united against me. Once we had a dispute over the historical figure of Jesus. My son called me a godless person and he decided that my marriage with my wife had to end,” he recalled. “They destroyed the family.”

Last night’s Obama speech got people thinking to buy more guns. It’s kind of funny that people are doing the exact opposite of what he wants them to do. I am sure the IRS will be paying you a visit shortly.

The idea of tethering a no fly list to no buy gun list has people nervous, because it’s a super populist idea on the surface. As Americans, we are generally uninformed when it comes to what Homeland Security does all day long. We believe the no fly list is filled with terrorists and men running around with nitro-glycerine in mason jars.

The truth is, the no fly list is a some random computer generated algorithm, built by incompetents, that can be manually adjusted whenever a political enemy arises. For example, I am sure all of the readers at Zerohedge are on a no fly list. It’d be a shame to take away their 2nd amendment rights all because they want to see equity markets at zero…all of them.

As such, shares of RGR and SWHC soared today, with SWHC taking out new highs.

As for the overall market: oil is tipping us into the black sea of nothingness. A few more days like this and I expect to see zero bids in the market. The debt load is mountainous and the underlying commodity, by which the loans are secured, are being discounted daily.

As an aside, ISIS makes 25%+ of their income from oil, approximately $500 million per annum. It’s widely known that they retail crude at 1/4th the price of market prices, meaning they are selling in the Brent markets for about $10 per barrel now. It’s not a coincidence that ever since the rise of ISIS, oil prices have been shattered.

Exodus is now flagging OVERSOLD. Get your buy tickets ready, for we rally inside of 5 trading days.

Oil fell nearly 6% today, causing a panic amidst the sector. A whole slew of names dropped double digits, making today the worst rout in the oil and gas sector in recent memory.

I suppose when you have a small population and 654 billion dollars saved from the good years of $100 oil, you can afford to ruin your #1 export, in order to destroy your competition. That’s exactly what Saudi Arabia is doing now. Say goodbye to energy independence and get familiar with bowing down to the King of Sand for the next 50 years.

Due to the severity of today’s drop, down more than 8% for oil stocks, debt/eq ratios are blowing out–ballooning the amount of distressed debt to $265 billion.

That only includes stocks that are listed here. The level of carnage that will take place in 2016 will remind you of the sweet summer days of 2008.

Fuck you and your shitty headlines. The Dow is down for the year, really? We have sectors down 50% for the year. Stocks in tech, commodities and retail down 30% across the board.

Gargatuan hedge funds getting blown the fuck up, as if they were holding bags filled with micro-cap shit. Let’s not be so glib about the difficulties this market has posed during 2015.

Last night, our President menaced us by threatening to take away our guns. I do not pretend that the 2nd amendment is still intact, living in a state that will toss you into a gulag for 5 years, mandatory, for having an unlicensed firearm. Gun rights are, at this stage, a state’s issue. The constitution is the toilet paper for the people you elect in Congress.

Nevertheless, the President said Congress should prohibit persons on the “no Fly list” from being able to purchase a gun. How does this pertain to the San Bernardino attacks? It doesn’t. But it’s populism, catering to the weak minded, mentally disabled liberal.

Seventy two employees at Homeland Security are on the “no fly list”, alongide scores of congressmen, including the late Ted Kennedy. It’s completely arbitrary, without due process; and by tethering gun rights to this shadow government blacklist, you permit the gov’t to ban whoever they want from buying a gun.

Moving on. Stocks are lower. Oil is plunging down into the dirt, further pressuring the entire commodity sector. Stocks like FCX, CHK and KMI look like they want zero.

Biotechs are getting lit again, with huge losses found in BLUE, AGIO and many others.

Fucking U.S. motherfucking Steel has a 7 handle.

Oh, yeah, the Dow is also down for the year (takes shot, scowls at tv).

According to Greenlight Capital’s latest letter to investors, Einhorn reopened his GMCR short at $102.

He was quite pleased with the progress, as a point in fact.

With today’s buyout of GMCR, Mother Market, the cruel bitch that she is, took away Einhorn’s biggest winner. In a year plagued with one set back after the next, long CNX, MU, CBI and let’s not forget SUNE, today’s GMCR meteoroic surge has to be both demoralizing and outright upsetting to the good folks at Greenlight.

It’s worth noting, as of recent filings, Greenlight’s largest holdings are AAPL, GM and KORS. Aside from his ‘bubble basket’, Einhorn is also short MNK, ATHN and PXD.

This is an amazing, yet logical move for anyone interested in getting into the coffee/appliance business. The deal is worth almost $14 billion and values GMCR at $92.

Keurig Green Mountain and JAB Holding Company announced that the companies have entered into a definitive merger agreement under which a JAB-led investor group will acquire Keurig Green Mountain for $92.00 per share in cash, or a total equity value of approximately $13.9 billion. JAB is acquiring Keurig Green Mountain in partnership with strategic minority investors who are already shareholders in Jacobs Douwe Egberts B.V., including Mondelez International (MDLZ) and entities affiliated with BDT Capital Partners. At the close of the transaction, Keurig Green Mountain will be privately owned and will continue to be operated independently by the company’s management team and employees.

The agreement, which has been unanimously approved by Keurig Green Mountain’s Board of Directors, represents a premium of approximately 77.9% over Keurig Green Mountain’s closing stock price on December 4, 2015.

The transaction is not subject to a financing condition and is expected to close during the first calendar quarter of 2016, subject to customary closing conditions, including receipt of regulatory approvals. The transaction requires the affirmative vote of holders of a majority of Keurig Green Mountain’s outstanding shares entitled to vote thereon.

As of Friday’s close, more than 12% of GMCR’s float was sold short. All of those people are dead now.