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"There Is Moar Blood" WTI Crude Plunges Into The $40s

Tyler Durden's picture




 

WTI crude oil prices are now down almost 55% from the June highs, the impossible just happened... WTI Crude broke into the $40s... the 6-month plunge is the largest since the pre-Lehman plunge and 2nd biggest plunge in 28 years.

 

WTI back under $50...

 

Ugly...

 

Unequivocally not good...

 

 

Energy stocks have ropundtripped to pre-Fed levels...

 

This is exactly what Jeff Gundlach feared.

 

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Mon, 01/05/2015 - 12:33 | 5623895 kliguy38
kliguy38's picture

don't worry .....we're in a steady recovery

Mon, 01/05/2015 - 12:35 | 5623902 cossack55
cossack55's picture

Love it, love it, give me moar of it.

Mon, 01/05/2015 - 12:36 | 5623911 bovine-reuptake...
bovine-reuptake-inhibitor's picture

hope the deflationists enjoy their 5 minutes in the spotlight...

Mon, 01/05/2015 - 12:40 | 5623919 jamochavez
jamochavez's picture

you ever take a look at iron ore and copper--a little longer than 5 minutes

Mon, 01/05/2015 - 12:41 | 5623931 The Limerick King
The Limerick King's picture

 

 

Our markets are coming unglued
Just look at a chart of our crude
Like many suspect
Our markets are wrecked
From mountains of debt we accrued

Mon, 01/05/2015 - 12:46 | 5623957 CrimsonAvenger
CrimsonAvenger's picture

You are to words what William Banzai is to art. Brilliant.

Mon, 01/05/2015 - 12:49 | 5623978 rccalhoun
rccalhoun's picture

not to be a bitch, but im showing low tick at 50.02

Mon, 01/05/2015 - 12:50 | 5623990 svayambhu108
svayambhu108's picture

A lot of slow learners outthere

https://www.youtube.com/watch?v=-Bw39SIiHrQ

Mon, 01/05/2015 - 12:50 | 5623998 rccalhoun
rccalhoun's picture

brent is indicating 50 should have been broken already

 

Mon, 01/05/2015 - 12:57 | 5624030 F-Tipp
F-Tipp's picture

If anyone thinks these prices are here to stay, they should examine history. The Saudis are doing the same thing they were in the '80s - oil peaked at around $100/bl (2014 dollars), and fell to around $30/bl (2014 dollars). This is going to be a tremendous buying opportunity, after shale/russia/etc are pushed out of the market.

Don't worry, we'll be back to 5$/gal gas in a few years and then we can read on ZH all the articles by the same people today calling low oil "the death of the world economy."

Mon, 01/05/2015 - 12:59 | 5624042 Headbanger
Headbanger's picture

WRONGGGGGG!!!!!

Mon, 01/05/2015 - 13:07 | 5624094 WTFRLY
WTFRLY's picture

Gonna need some more non-gmo popcorn for the economic collapse (or if you prefer to call it the start of World War 3)

Mon, 01/05/2015 - 13:10 | 5624122 Soul Glow
Soul Glow's picture

Pretty sure we're going to be the only ones eating popcrn when this shitshow goes into high gear.  And WW3 will be fought with sticks and swords once JPM and Goldman wreck the earth.

Yes the bankers are the military, destroying all for the sake of a few.  Scorched policy and what not.

Mon, 01/05/2015 - 13:54 | 5624342 new game
new game's picture

up! no blood on their hands just in the streets, ha...

Mon, 01/05/2015 - 13:16 | 5624152 Pareto
Pareto's picture

+1 I hear your frustration.  Its like its SO WRONG that there actually isn't any point to a rebut.  Happy New Year HB

Mon, 01/05/2015 - 13:16 | 5624145 Pareto
Pareto's picture

Could give a fuck about 3 years from now. - what a retarded statement.  and nobody is calling for the death of the world economy!  jfc!  a return to normalcy, where central bank retardation is rendered useless, null, and void - yes.  End of the world economy? Nominal prices  fall, real interest rates rise, assets trade hands and both bids and asks fall - FOR EVERYTHING.  Used to be called a correction, but yeah, I guess anybody talking about end of world economies - this is as far as they get.

Price shocks of the kind you expect in 3 years (on oil, or any other commodity) are short term adjustments - ALL ELSE EQUAL.  But Central Bank support through interest rate suppression and bond and stock purchases - this is a different matter.  A non-market interference such as this will render what you say true, and yet - here we are with interest rates essentially near zero.  What motivates $5/gal gas - seriously?  Negative rates?  Prescient arrogance.  EABOD!

Mon, 01/05/2015 - 15:20 | 5624814 wrs1
wrs1's picture

Go look at Texas RRC numbers back then.  From 1980 to 1985 there were 35,000 wells added and production dropped from 2.5mmbbl/day to 2.3mmbbl/day.  This time around there have been 28,500 new wells and production has increased since 2009 from 980mbbl/day to 2.8mmbbl/day.  Big difference there, can you spot it?  I am not sure the Saudi's realize it.

Mon, 01/05/2015 - 15:50 | 5624945 csmith
csmith's picture

Bingo. A case of "careful what you wish for..." re well productivity.

Upshot is that hyperproductive wells may drive U.S. production UP, even as the rig count falls by 30%.

 

Mon, 01/05/2015 - 12:49 | 5623985 svayambhu108
svayambhu108's picture

The world needs some Banzai moderators

Mon, 01/05/2015 - 12:49 | 5623992 Uncle Remus
Uncle Remus's picture

You're a poet

we're glad to know it

Mon, 01/05/2015 - 18:00 | 5625493 Heavy
Heavy's picture

Awesome!  Well said.

Mon, 01/05/2015 - 12:42 | 5623933 robertocarlos
robertocarlos's picture

I'm debt free. I love it.

Mon, 01/05/2015 - 12:45 | 5623952 bob_stl
bob_stl's picture

Not if you're an American citizen. In that case, you're heavily in debt through your governments borrowing.

Mon, 01/05/2015 - 12:47 | 5623977 TheFourthStooge-ing
TheFourthStooge-ing's picture

Never heard of odious debt?

Mon, 01/05/2015 - 13:02 | 5624067 bob_stl
bob_stl's picture

Yeah, good luck with that.

Mon, 01/05/2015 - 12:58 | 5624036 Vylahkinnen
Vylahkinnen's picture

Absolutely right. And according to the new American Debt Collection Act that was recently signed by President Obama, you and your children and their children are from now on obliged to provide services until the debt is paid off. American Comrade, you too can become a hero of labour.

Mon, 01/05/2015 - 12:48 | 5623987 zuuma
zuuma's picture

Here's to hoping for $10/ bbl.

.89/ gallon would be VERY enjoyable.  

Might even haul out the '67 camaro 327 4bbl from storage & gun it at every stoplight on the way to work.

Tach up to redline through every gear.  I'll be young again!

For the same cost as someone driving a wimpy, sissy prius in 2013, I can drive a loud, offensive, polluting, totally satisfying, classic musclecar .

Good times!

 

Mon, 01/05/2015 - 12:58 | 5624034 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

I took my Supercharged Saleen (with Gold rims - I did that for a reason) for a good thrashing this weekend....no Cats (took off the 6 cats that were mandated from Cali).  Loud, smells like gas and I ran into a Prius and a 3 thousand RPMs my car will almost make you deaf....I gunned it and he was sweaving all over the place, lol

Mon, 01/05/2015 - 13:05 | 5624087 zuuma
zuuma's picture

"I gunned it and he was sweaving all over the place, lol"

You did the right thing.

Prius boy probably had a nice, spontaneous colon purge after that... which is nice.

See, you're actually protecting fellow motorists' health by doing that.

 

Well done.

 

Mon, 01/05/2015 - 13:49 | 5624322 Karlus
Karlus's picture

You could also wait for a day when the rain stops and nail some puddles with people walking on the sidewalk too....

Mon, 01/05/2015 - 13:54 | 5624349 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

What I did was funny, what you are talking about is just mean.

Mon, 01/05/2015 - 14:54 | 5624680 sleigher
sleigher's picture

It's ok, he was driving the Prius.

Mon, 01/05/2015 - 15:21 | 5624825 wrs1
wrs1's picture

LOL!  None of my cars get more than 13mpg around town or 20mpg on the highway.  I have a RR Sport Supercharged that gets around 13mpg combined.

Mon, 01/05/2015 - 16:48 | 5625220 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Ouch, one of teh most expensive and unreliable vehicles ever to own. Yoiu better hope the Dow bounces back. lol

Mon, 01/05/2015 - 12:34 | 5623897 Seasmoke
Seasmoke's picture

Psychological has Been Broken Thru !!!!!!!!

Mon, 01/05/2015 - 12:43 | 5623943 pods
pods's picture

Once the psychological hymen is broke, they start whoring it up.

pods

Mon, 01/05/2015 - 13:10 | 5624113 El Vaquero
El Vaquero's picture

Once you pop, you can't stop!

 

(Until shale producers start to default on their debts and junk bonds get fuckered anyway.)

Mon, 01/05/2015 - 12:33 | 5623898 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Oh the horror, the horror...personally I like low oil prices and if it helps bring down this fake financial paradigm it's even better...win win for me

Mon, 01/05/2015 - 12:37 | 5623909 wrs1
wrs1's picture

Really, what happens if gold is $500?  What are you going to do?  How do you know the financial paradigm is fake?  

Mon, 01/05/2015 - 12:37 | 5623913 Dr. Engali
Dr. Engali's picture

Buy moar.

Mon, 01/05/2015 - 15:55 | 5624979 disabledvet
disabledvet's picture

Agai...this hits the debt markets not equities.

I would not be surprised if something far larger than Detroit "goes down" here. This is not a problem for the stock market in my view even if we're staring at a twenty percent correction or more. "Be greedy when others are fearful" looks like it is upon us...

Mon, 01/05/2015 - 12:43 | 5623940 deeply indebted
deeply indebted's picture

"How do you know the financial paradigm is fake?"

Are you for real?

Mon, 01/05/2015 - 12:46 | 5623965 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

LOL I know rigth....anyone who actually uses thier brain, knows this shit is as fake as Pamala Anderson's tits 

Mon, 01/05/2015 - 12:50 | 5623973 fuu
fuu's picture

He's really thumping the $500 gold meme this morning. He doesn't seem to understand that just makes the stacks larger.

Mon, 01/05/2015 - 14:38 | 5624624 wrs1
wrs1's picture

LOL!  Not if you don't have job to make those fake $ so you can buy gold with them?  Otherwise how you going to get gold?  Trade some oil for it?  Oh wait, you don't have any oil do you?

Mon, 01/05/2015 - 15:20 | 5624824 fuu
fuu's picture

I'm not too concerned about not finding work, there is always someone willing to pay for mixing and mastering.

Mon, 01/05/2015 - 14:37 | 5624615 wrs1
wrs1's picture

Do you spend their money or not? Do you breathe air or not?  How do you know air is not fake?

Mon, 01/05/2015 - 14:48 | 5624660 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

This comment makes no sense. 

Mon, 01/05/2015 - 12:48 | 5623988 Renewable Life
Renewable Life's picture

Lol

Thanks for the laugh!!

I'll answer the first part of your question, the part that isn't insane.........

Gold at $500???? I buy every other day until the power goes out and the checkpoints go up, that's what:) any questions?

Mon, 01/05/2015 - 14:50 | 5624671 wrs1
wrs1's picture

Why do you have money if all you care about is gold?

Mon, 01/05/2015 - 13:03 | 5624045 firstdivision
firstdivision's picture

Don't know if you noticed, but the USD has strengthend quite a bit and gold didn't fall very much, so basically no you will not see $500 gold.  But we'll imagine that gold does hit $500, if it does, I'm selling every asset I have and buying it (the real stuff, not the promises of it).

Mon, 01/05/2015 - 14:09 | 5624438 Matt
Matt's picture

"Really, what happens if gold is $500?"

Maybe we'll be super lucky and the system will go full circle, back to $20 gold.  

Mon, 01/05/2015 - 14:12 | 5624458 Bunghole
Bunghole's picture

Hey dipshit.

Gold is measured in troy ounces.  Not in dollars.

 

Mon, 01/05/2015 - 14:41 | 5624635 wrs1
wrs1's picture

Oil is measured in barrels, so what.  You can't get oil for gold or gold for oil.

Mon, 01/05/2015 - 12:35 | 5623903 Bunga Bunga
Bunga Bunga's picture

Get a Tesla, LOL.

Mon, 01/05/2015 - 12:45 | 5623956 Katastrofenhausse
Katastrofenhausse's picture

LOL

Just make sure you get your garage lined in 3/4" fire code Sheetrock first

 

http://www.teslamotors.com/forum/forums/bi-another-tesla-caught-fire-while-sitting-toronto-garage-month

Mon, 01/05/2015 - 13:12 | 5624129 El Vaquero
El Vaquero's picture

It's better than putting up the lead lined shit that they use in X-Ray rooms.

Mon, 01/05/2015 - 12:34 | 5623904 falak pema
falak pema's picture

the guys said : It'll go down to 10...Can't remember his name.

Mon, 01/05/2015 - 12:41 | 5623925 redsolo78
redsolo78's picture

Mike Maloney

Mon, 01/05/2015 - 12:45 | 5623949 robertocarlos
robertocarlos's picture

Rhymes with bologna so it can't happen.

Mon, 01/05/2015 - 13:06 | 5624089 falak pema
falak pema's picture

bologna has meat balls not just noodles. Noodles go to 10 but meat balls have more consistence. 

Mon, 01/05/2015 - 12:37 | 5623906 Dr. Engali
Dr. Engali's picture

Filled up my car for $26 this week. It sure beats filling up at $64. I'll take deflation any day. 

Mon, 01/05/2015 - 12:47 | 5623962 Oleander
Oleander's picture

Much nicer to buy heating oil now too. Temps are going to drop here and its nice to have the heat on a comfortable setting when we have morning coffee.

Mon, 01/05/2015 - 13:00 | 5624052 saltedGold
saltedGold's picture

It is an exciting time Dr E.  I have a work truck that I use spring and summer so I get to play a waiting game and watch the gas prices go down.  I have all winter to wait before I have to fill it up, so it's exciting to watch as my eventual fill up gets cheaper and cheaper. 

Mon, 01/05/2015 - 13:04 | 5624071 Pareto
Pareto's picture

.......and all day Doc.!!

Mon, 01/05/2015 - 12:39 | 5623914 wrs1
wrs1's picture

Let's drill some more wells.  I am sure if we can get field hands for $7/hr and rigs at $5k/day we could handle $25/bbl oil.  The oil is there, it can be gotten now.  So what is going to keep people from getting it?

Mon, 01/05/2015 - 12:46 | 5623958 robertocarlos
robertocarlos's picture

You can make $10 an hour pressing buttons at McD's and asking if they want fries with that.

Mon, 01/05/2015 - 13:04 | 5624069 Pareto
Pareto's picture

This too, will change - DOWN.

Mon, 01/05/2015 - 14:11 | 5624447 Matt
Matt's picture

You think minimum wage will go down? Maybe union and elected officials will take a pay cut, too!

Mon, 01/05/2015 - 12:39 | 5623916 czarangelus
czarangelus's picture

There's really not any demand for oil at $60/barrel?

Something nasty is going on and I'm reminded of a passage from the Tao. No matter how good these low oil prices seem as an end user, it's never, ever a good sign when a price fluctuates wildly no matter whether it's going up or down.

"What does it mean that success is as dangerous as failure?
Whether you go up the ladder or down it,
you position is shaky.
When you stand with your two feet on the ground,
you will always keep your balance."

Mon, 01/05/2015 - 13:23 | 5624180 Renewable Life
Renewable Life's picture

I agree with u generally speaking, however this oil shit has gone full retard like everything else in our fiat, ponzi world!!!!

It's hard to tell what demand is, because all the government reports on the world AND domestic GDP are manipulated, in order to maintain the status quo and security. It's hard to tell what cost is, because all the corporate filings are manipulated to maintain inflated fake leveraged stock deals and prices too!

Then you introduce all this geopolitical, national security bullshit on a global scale, Country's needing oil reserves for X, Y, and Z war ambitions and security reasons.

My point is, there very well might be demand for oil at $60 or $70, but the Ponzi scheme is pumping oil like demand is for $125 oil to continue to finance their leveraged debt and socialist economics control variables, like entitlements, pensions, etc!

And this is happening world wide now, thanks to uncle Yellen and her past ponzi pumpers circa 2008 onward!!!

The Saudis know this and have called the worlds bluff on all this bullshit and will continue to pump at $125 levels until it blows up and the US will have to continue to pump to maintain their ponzi financed oil infrastructure and the third world dictators will have to pump more as the price drops to maintain their Socialist Obligarchy power structures!!

So you see, what your watching is the the last global capitalist gasp of oil, it's all unicorns and fairy tale shit from here, until the wars and fires start burning shit to the ground!!

Mon, 01/05/2015 - 12:38 | 5623920 Osmium
Osmium's picture

I can't believe they haven't trotted BullTard or Yellen out to say all is fine.

Mon, 01/05/2015 - 12:44 | 5623947 Dr. Engali
Dr. Engali's picture

That alone tells you something.

Mon, 01/05/2015 - 12:45 | 5623963 Ness.
Ness.'s picture

Williams had the lead today.  Said that tightening could come later than expected.  Imagine that?

Mon, 01/05/2015 - 12:48 | 5623991 NotApplicable
NotApplicable's picture

Hmmm... well, my expectations are never, so...

Mon, 01/05/2015 - 12:52 | 5624003 Osmium
Osmium's picture

They are BTFD now.  Would love to see the dip buyers get crushed this time.

Mon, 01/05/2015 - 13:30 | 5624217 Wait What
Wait What's picture

Transitory, bitchez!

Mon, 01/05/2015 - 12:46 | 5623969 Bell's 2 hearted
Bell's 2 hearted's picture

.... or blow up a pipeline (or two) ...

Mon, 01/05/2015 - 12:39 | 5623922 alexmark2013
alexmark2013's picture
US oil consumption will stay at recession levels through 2015, economists say. http://investmentwatchblog.com/us-oil-consumption-will-stay-at-recession-levels-through-2015-economists-say/
Mon, 01/05/2015 - 12:51 | 5623996 Bossman1967
Bossman1967's picture

They screwed the traveling salesman and I dont travel and 4 million plus health insurance salesman are no longer traveling so what did they suspect. Sure glad i paid off my debt and am living frugle but how can this country survive with millions like me paying no taxes? Hmmmmm

Mon, 01/05/2015 - 13:46 | 5624295 agstacks
agstacks's picture

They just ask more of the rest of us.

Mon, 01/05/2015 - 12:39 | 5623923 pods
pods's picture

This won't be good for GDP.  I can imagine UE for oil patch people will spike too.

Just wait till Mr. Yellen raises rates!  Shit, they will be pumping QE again before they start raising rates.

pods

Mon, 01/05/2015 - 13:28 | 5624205 Wait What
Wait What's picture

"Turn those machines back on!"

April sounds like as good a time for QE4 as any. Let's make it an even 4 trillion this time, Janet.

Mon, 01/05/2015 - 12:40 | 5623928 RealistDuJour
RealistDuJour's picture

Man, those charts make me horny!! Look at what happened right after the big plunges!  I love doom and gloom, and catchy phrases such as, "it's different this time", or the even more moronic "it's different this time because it is".  If you aren't getting ready to invest heavily in energy you are a fool, and will be stuck on the sidelines, like many have been since 2009. 

Mon, 01/05/2015 - 13:22 | 5624170 El Vaquero
El Vaquero's picture

I would say that you are right and it would be a good idea to go long on oil sometime between now and the next 6 months, but you never know when they're going to engage the presses at warp factor "fuck you" and youi never know what they're going to buy with it.  If the Fed stays out of this, there will be a junk bond crisis that will likely spread.  If the Fed doesn't stay out of this, all bets are off.  If I were a betting man, I would bet on a junk bond crisis, followed up by PRINT MOAR!  I'm not going to bet on that though.  I'm not an insider.

Mon, 01/05/2015 - 14:08 | 5624437 Farmer Joe in B...
Farmer Joe in Brooklyn's picture

Nailed it....!!

This SHOULD lead to a nice little crisis that could have implications for risk assets across the board (stocks & real estate, in particular). 

That said, once the Fed reloads the QE bazooka, all bets are off.  The fed is the X-factor keeping me from going all-out short and forcing me to play out-of-the-money puts for protection (which gets to be an expensive form of insurance). 

Mon, 01/05/2015 - 12:41 | 5623935 BadDog
BadDog's picture

central bankers gone wild series

https://www.youtube.com/watch?v=wTB6PRruE0A

Mon, 01/05/2015 - 12:42 | 5623937 stant
stant's picture

Gona wait until the price drops on those self driving cars.Don t want to drive myself to the poor house

Mon, 01/05/2015 - 12:45 | 5623944 Alpacanio
Alpacanio's picture

Mid to low 40's and the D-bomb goes off if the banks say so.

 

Mon, 01/05/2015 - 13:23 | 5624191 El Vaquero
El Vaquero's picture

Ah, but they're manipulating a physical commodity that has limits to how far it can be manipulated.  At some point, the banks can say whatever the fuck they like.  It will be physics and geology calling the shots, much to their chagrin. 

Mon, 01/05/2015 - 12:43 | 5623945 Kaiser Sousa
Kaiser Sousa's picture

entertaining watching how vigorously the cocksucking MoneyChanger scum r defending the phony paper prices of Gold at 1200.00 and Silver at 16.00....always the last hour...

so obvious...

http://www.kitco.com/charts/livesilver.html

http://www.kitco.com/charts/livegold.html

Mon, 01/05/2015 - 12:48 | 5623972 Quinvarius
Quinvarius's picture

All you have to do is look at gold miners to know where energy stocks are going.  No point hanging around in ground zero.

Mon, 01/05/2015 - 13:52 | 5624327 wrs1
wrs1's picture

gold miners should be telling you where gold is going

Mon, 01/05/2015 - 12:48 | 5623974 firstdivision
firstdivision's picture

Support is at the level where we have price deflation on things like food.  Once food prices fall to the level that the normal man can afford to go to the grocery store and buy enough to feed himself, then the Fed will have had enough and start buying up fwds like nobodys business.  We cannot have plebs afford food, its unnatural.

Mon, 01/05/2015 - 12:47 | 5623980 joego1
joego1's picture

About this time Obolarang gets out his putter in preparation for his next round.

Mon, 01/05/2015 - 12:49 | 5623982 madbraz
madbraz's picture

some big player is certainly dead from this action and the bank(s) who loaned them the money on margin isn't coming to collect - probably a NY FED order to keep this turd afloat.  that's unsustainable.

Mon, 01/05/2015 - 12:51 | 5624000 Bell's 2 hearted
Bell's 2 hearted's picture

not just oil

 

CRB (commodity basket) keeps digging multi year lows

 

http://www.marketwatch.com/investing/index/CRB?countrycode=XX

Mon, 01/05/2015 - 12:54 | 5624023 ghostzapper
ghostzapper's picture

We unequivocally crashed some folks' crude. 

Mon, 01/05/2015 - 12:59 | 5624044 Oilcrashing
Oilcrashing's picture

More than half of the petroleum extraction industry is unprofitable right now as we speak, but everything is fine. It is not that times have changed and oil is not elastic anymore. Enjoy the cheap gas prices at your fuel stations! Enjoy the expensive oil being sold at cheaper prices (which gives you a clue of how broken our financial system is)!

http://www.ft.com/intl/cms/s/0/51cc00ba-7f85-11e4-86ee-00144feabdc0.html

http://makewealthhistory.org/2014/12/16/break-even-points-for-oil-producers/

Mon, 01/05/2015 - 13:06 | 5624082 Soul Glow
Soul Glow's picture

So every dumb ass that went long in the $50s got stopped out?  Ha.

Mon, 01/05/2015 - 13:21 | 5624095 Keltner Channel Surf
Keltner Channel Surf's picture

No opinion on oil, but on the overall equity carnage, it's worth noting the goddamn Russell is suspiciously performing MUCH better than its bigger index brethren, and has been exibiting a silly sideways 'picket fence' pattern on the 15m bars all day, currently sitting around the 20 DMA.  If the RVX (and VIX) take a nosedive, we could be in for a post-Europe pop that could retrace 70% or more of the losses.  On the other hand, true bears will want to see these paint-by-numbers machine-driven auto-ramps, which have embraced, and enveloped, RUT for 3+ yrs, have a notable failure, taking the quant shitheads down with the ship.  Time for popcorn, and good finger dexterity for switching back and forth from the FA cup to these odd markets . . .

Mon, 01/05/2015 - 13:11 | 5624120 Spungo
Spungo's picture

Saying gold will go to $500 is like saying oil will drop to $20. It could, but it would cause major supply problems. Don't expect it to stay there very long.

Mon, 01/05/2015 - 13:18 | 5624163 Soul Glow
Soul Glow's picture

Gold is up on the day, and while oil got its price cut in half gold hasn't budged.  That should tell you something.

Mon, 01/05/2015 - 13:41 | 5624270 wrs1
wrs1's picture

Tells me you can't read a chart.  Gold was $1350 in July when oil started dropping and it was nearly $1400 last spring.  Looks to me like gold sucks too and it's up on the day because it was crushed as soon as the markets opened on Jan 2, right back down to $1170.

Mon, 01/05/2015 - 13:47 | 5624294 wrs1
wrs1's picture

Apparently you don't pay much attention to gold and oil.  When gold was at $500 in 2006 oil was at $60.  Gold was a little too cheap and it came up some but the average is 12-13 bbl/oz.  Better sell your gold now.

Mon, 01/05/2015 - 13:41 | 5624273 Madcow
Madcow's picture

So - now i guess we know that all those years of oil at $70, $80 ... $100 ... $120 .... $130 ... 

That was all due to Wall Street speculators and had nothing to do with the real economic value of oil.

Shut down "QE" and ther's no money for bankers to specualte in and bid up commodity prices. 

Mon, 01/05/2015 - 13:46 | 5624298 wrs1
wrs1's picture

exactly, gold back down to $300

Mon, 01/05/2015 - 14:07 | 5624434 Winston Churchill
Winston Churchill's picture

Nice to see they let you use computers in Broadmoor nowadays.

Mon, 01/05/2015 - 15:01 | 5624716 fuu
fuu's picture

Yet another incarnation of the Gully Foyle/bob_dabolina/Meth Man action team.

Mon, 01/05/2015 - 15:26 | 5624837 J in Vegas
J in Vegas's picture

I had to log in to give you a +1 on pulling meth man out of the dust bins.

Mon, 01/05/2015 - 13:49 | 5624321 Jano
Jano's picture

The banks, who rigged the oil futures, should pay us back the difference between $50 and $100 for the last 7 years.

Mon, 01/05/2015 - 14:24 | 5624547 Chad_the_short_...
Chad_the_short_seller's picture

oas puts, thank you!!

Mon, 01/05/2015 - 14:42 | 5624639 NoWayJose
NoWayJose's picture

There is No Way that the big banks, big oil, and the oligarchs are going to let me pump $2.00 gas into my car this Fourth of July!

Mon, 01/05/2015 - 14:43 | 5624645 Bemused Observer
Bemused Observer's picture

Wouldn't it be funny if it was actually Russia driving the price down?

I don't know why that occurred to me, but it did. Maybe because of all the high-fiving among Western powers at how 'We're KILLING the Russian economy!"

I got a sudden image of Putin cackling as he gives the order to crank it out..."C'mon! 40 dollars crashes the derivatives market!"

I mean, if Saudi can flood the market and affect prices, why not Russia? And they have little debt, and a lot of gold reserves, it seems they may be better able to tolerate low prices, maybe longer than WE can...

Mon, 01/05/2015 - 16:22 | 5625102 mattgallis
mattgallis's picture

We plunged some folks.

Mon, 01/05/2015 - 20:11 | 5625930 mijev
mijev's picture

They could sweeten the deal even more by offering a discount if you pay in roubles.

Mon, 01/05/2015 - 22:02 | 5626309 Bemused Observer
Bemused Observer's picture

Not right now...No distractions from that price in DOLLARS as it gets sucked into the void.

They can do the ruble thing afterwards, like they're picking up the pieces...IF they really feel like sticking with the whole fiat-thing after that...personally, I'd give that some thought if I were them though.

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