So Congress has called back the oil executives before their Mighty High-rise Desk of Deference to remind those greedy bastards of their place in the world. After all, the U.S. Government gives them some fucking table scrap tax credits. So why are gasoline prices at $4 a gallon?
Sweet. I cannot wait for the grand standing of our most desperate elected officials trying to score quick political points with people dumb enough to think this constitutes intelligent leadership, a.k.a. Independents.
Here’s a sweet idea. The oil executives should walk in and say something along the lines of “Hey, you’re right, take away the tax credits.” Nip this fucking thing in the butt right now, before it is permitted to become a penny show of cheap whores, like the kind your great-grandfather used to sneak into when he was fourteen.
I am in a very sour mood right now, so pardon me if I’m a little short. You see, I absolutely nailed this call on the dollar rally. I’m not going to take the time to link the post; just get your lazy ass up and start walking backwards until you find it.
Yet, I completely hosed myself, taking up this position in SLV thinking, “hey, 30% is the sizable correction I was waiting for.” Now I find myself blowing up my own wisdom with expedient decision making.
Apparently, you all will not be satisfied with such a drop. Silver must become so cheap that it will replace plastic as our go to material of choice. My children will suckle on silver pacifiers, because ones made from petroleum are “health hazards, and so damn expensive.”
I’m going to wait it out a little longer. Some part of me still believes I made the right move last week. For Christ’s sake, no action has even been taken to strengthen the currency yet! The dollar has really only rallied because literally no one believed in it. I can see us careening downward if actual steps were taken to shore up the dollar. Hell, maybe even if steps were taken to preserve it.
None of that has even happened yet. It’s just a looming possibility somewhere over the horizon.
I will abide a little longer, yes. But I don’t like the feeling in my stomach. No not at all…
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Great post, I absolutely can relate to this stomach feeling – although its aided by horrendous Maxwell House coffee.
Tax cuts being removed is very optimistic. However, don’t you think that will translate into higher prices and cost passed on to consumers? Or whats your take?
No idea; I think the bigger issue at this point is $100 per barrel oil, disrupted supply chains, and flooded refineries. Removing some tax credits may be offset, but how much worse can it be? At these levels, what percentage of profits do those credits even constitute? How will their removal affect future exploration and well development?
Far too much to think about before now; I really didn’t think Congress would be dumb enough to bring up the issue twice in 5 years.
I agree with your sentiment about congress and the oil barrons, we’ve all seen the indignant pols and the repentant barron dance before. Nothing comes of it all, except the time waste. But I have to say, if we’re so intent on cutting the fat in the budget/spending, EVERYTHING has to be on the table, including tax breaks. Even mine.
They should trade tax breaks for the ability to drill in US territory. The fact that the One was on tv talking about investing in Brazilian drilling — mess up your environment, it’s not like we need to worry about it! — instead of U.S. drilling is unconscionable.
He is the ultimate slavemaster hypocrite. His asshole greenbuds don’t want to drill here but they’ve given him a pass to drill in a quasi-3rd world country?
How liberal of them.
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I would agree with that, save one area: agriculture.
All the great civilizations have had to relearn the same tired lesson. Don’t fuck with your food supply.
Of course that includes the ridiculous ethanol subsidies. Take those away and more corn is available for funny stuff like food instead of being wasted on a fuel that winds up clogging your car engines.
Agreed, burning food is stupid.
LOL @ the silver pacifier thing.
Interestingly, you may have stumbled onto something, as silver is an anti-bacterial. Perhaps if you could figure a way to get some sort of silver tincture onto a soft pacifier, you could have the ultimate high-end Bobo “must-have” baby item.
Not to mention, you know they’d be all over the rap vids, too.
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Lil’ Wayne would likely endorse my Silverfiers.
Enough! Out of SLV, all of it. Having crazy bastards yelling for $25 an ounce in more than I’m willing to stand. I will return at a later date.
I have a small cash position, with that exit. I’m not cutting anything else; the positions I have were selected because they are underestimated. If they lose value because Blackrock type funds are selling them indescriminately, I’ll wait it out.
Silver futures are going absolutely nuts. There are 10% spreads months apart. And are they flipping to backwardation? I will return and buy the blood when I see some level of sanity return to the futures; I want a normal, healthy contango.
i think the best long on silver is to be short ZSL. it’s working for me this morning.
the induced sea of red,no one escapes unscathed.95% of the sheeple have no clue of markets,so when idiots in congress go after oil execs, maybe someone of these oil execs should implicate the fed for manipulation of the sector for their own coffers. i would pay to see that reaction
Bought SCO, hedging down the portfolio.
Looking to short some 3x long energy/commodity; not sure what I’ll find.
Shorted ERX
(laughter) I changed my mind, and got out of the inverse energy play, for lovely losses.
If you think I’m crazy, I can appreciate that.
I have a decent sized cash position, and will humbly take my losses with dignity and poise.