Democrats warn against potential big oil bailouts

[SheltieLover]

https://wreg.com/news/washington-dc-bureau/democrats-warn-against-potential-big-oil-bailouts/

WASHINGTON (NEXSTAR) — Democrats want to stop pumping taxpayer money into the flagging oil industry.

The bottom fell out of the oil market and oil prices dropped to unprecedented levels when the coronavirus pandemic shut down the U.S. economy.

President Trump moved quickly to shore up the oil industry by ordering the purchase of undeveloped oil (oil still in the ground) for the national stockpile because the government has no place to put it. Republicans like South Dakota Senator John Thune think the oil industry will need more help.

More at link.

[Celerity]

1. They suck up hundreds of billions, maybe over a trillion plus, by the time thsi is all over.

Book it.

[MoonlitKnight]

2. And it's not just oil

The Fed has a balance sheet that is nearly half of GDP. We just gave away nearly three trillion dollars to businesses. Stocks are overvalued. Oil has rebounded way too much. It will be interesting to see what happens when the June contracts near expiration.

I am beginning to lean towards the belief that the Fed has been compromised and is acting to support Trump’s re-election. Tons of investors have been waiting on the sidelines but Fed interventions, that have on a daily basis exceeded the TOTAL QE of 2008/2009 financial crisis, have created a bubble.

We should be filling up any reserve space available, including the five tankers in reserve fleet. We could make a nice profit down the road. But I have my doubts that Trump wants to save US oil. He has been behaving in a manner helpful to Russia and Saudi Arabia. But it could easily been incompetence as well.

Bailouts are going into any pockets that Trump can get his hand into.