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Well guys it has gotten so serious out there that i can’t even do a holy smoke this for this video i can’t even do a joke for you i mean it has gotten super serious and i mean super fast okay oil prices right now are down over 31 percent i do i have never seen a 31 percent move in my life okay at least nothing i remember i never remember the oil price being down
31% i remember some big moves in the oil market you know 5% 7% 8% i don’t ever remember in my investing career which is like i started 2008-2009 a 31% move brent is down 29% this is insane i had to look this up just to see if i was like tripping i’m like this is like extraordinary stuff that is going on right now right and sure enough this is a biggest drop since
The gulf war in 1991 i was 2 years old back then ok the biggest drop since 1991 this is extraordinary stuff why is this oil prices just plunged more than by the way it’s a lot bigger than just oil prices we’re gonna give them a stock market cryptocurrency market it’s getting bad it’s getting bad and is getting bad really fast ok we’re gonna get into all this you
Know i hope you enjoy this always smash thumbs up on leave me a comment on ya or whatever oil prices put well at this point i don’t even care oil prices plunged more than 30% after opex failure to strike a deal with its allies regarding production cuts cause if i saudi arabia to slash its prices as it reportedly gets set to ramp up production ramping up production
Leading to fears of an all-out price war on all-out price war in a time where everybody says no one’s gonna be taking cruises right hmm they probably used a whole lot of oil right and everybody’s gonna be scared to obviously fly right with the whole ronis situation and everybody is talking about who wants to fly somewhere right now business travel is coming to
Pretty much all complete halt right now business meetings are being canceled left and right and people aren’t going on vacation right now because of the whole obviously the wrongness situation and also if people aren’t going in and if not flying now taking cruises are probably not gonna take car trips either and to say at some hotel that might have their owner
Right and if everybody is so scared about this and there’s gonna be no travel happening in meanwhile we’re gonna have an all-out race war at the worst possible time to have an all-out price war for the oil prices like that is unbelievable and so i can definitely understand why you know oil prices down over 30% now this gets really bad guys this is this is way
Worse than it looks on paper okay let me explain exactly what’s going on here okay this has turned into a scorched earth approached by saudi arabia in particular to deal with the problem of chronic overproduction says this gentlemen the saudis are the lowest cost producer by far this is facts this is an opinion this is facts okay there’s a reckoning ahead for all
Other producers especially those companies operating in the us shale patch we’re going to come back to that underlying those words there because that is a very important we will come back to that okay on saturday saudi arabia announced massive discounts to its official selling price for april in the nation is reportedly preparing to increase increase its production
Above the 10 million barrel per day mark according to a reuters report okay they’re gonna increase production in a time when basically the oil demand is gonna fall through the fore especially if there’s rona thing like keeps going on and keeps going on okay the kingdom currently pumps nine point seven million barrels per day but has capacity to ramp up to twelve
Point five million barrels per day so they’re gonna increase the supply and demand is going down literally pretty much day by day as of right now and if the rona situation gets a far worse but like demands gonna drop so substantially meanwhile production is going way up they’ll only play the only place for price to go right now is down and down and down and down
No this is such a big deal okay and let me explain why this is such a big deal okay the bill is coming due for a ton of the players that basically play in the north american shale play okay north american and gas companies have more than 200 billion dollars of debt maturing over the next four years 200 billion dollars of debt maturing in the next four years and
That’s for the oil and gas players just in north america okay starting with more than 40 billion this year in 2020 guys okay and if those players can’t make any money let me just explain this real simple okay if those players can’t make any money they can’t pay their debt guess what they’re gonna have to default on that debt and guess who ends up taking all the
Hits on that just all the big banks out there all the big us banks more than likely that loaned those oil and gas companies all that money that’s going to cause the banks to take some massive hits on their balance sheets and potentially and go ahead and start constricting how much they lend potentially this is all you know hypotheticals and we’ll see what happens
But i’m telling you none of the oil and gas players are gonna be making any money at the current prices they’re gonna be taking huge losses they’re taking huge losses how are they gonna pay the debt so slowly flat out and you know if you think involve maybe they’ll just take out more debt i don’t know a you know i mean if oil prices are in the 20s why even as a big
Bank why would you even write you know loan them money it’s kind of like throwing good money against bad i guess you can say because i’ve saudi arabia it’s just never gonna allow these guys to make any money then what are you gonna do like lately literally what are you gonna do and so you have banks potentially taking some massive hits then you have the the oil and
Gas sector it’s a big employment opportunity obviously in north america now i’ve seen conflicting numbers i’ve seen 880 thousand different people are employed by the oil and gas sector i’ve seen some where it’s like 1.5 million i’m getting very conflicting numbers but needless to say if you think about how many people are employed in north america just the united
States all alone in terms of oil and gas jobs it is a substantial portion okay and if those jobs are lost and long there’s no decent paying jobs and obviously those people become unemployed and if they become an employed they need to find a job somewhere else and those people stop spending money in the short term obviously that’s not a good situation okay by the
Way as i’m as i’m you know prepping this video about oil prices continue to go down no oil is down 33% okay and brynn’s down over 30% now it’s getting worse literally just as i’m doing this video here oh okay and by the way we haven’t even talked about the stock market yeah okay dow futures are down over 1200 points which might be the biggest you know move i’ve
Ever seen the dow down ever in terms of at least a point number like 1200 points for that futures market that’s why i’m recording a video for you on a sunday night okay i don’t ever remember recording a video on sunday night i might have over the course of the past four years or whatever i’ve been on youtube but i don’t think i’ve ever ever ever recorded a video
On a sunday night like this is crazy but this is extraordinary stuff full-fledged panic is in the market let’s not let’s not confuse ourselves full-fledged panic is officially in the market when you see oil prices going down when you see the markets like this another you know 5% downward move for the s&p 500 it’s looking like nasdaq so looking like it’s gonna
Take a 5% dip tomorrow we see the ten-year treasury a little over a half a percent what in the world guys and this comes just after the dow just fell 3,700 points in just the last three weeks so it hasn’t been like though everything has been great now some we’re gonna have a bad day like things have been gettin gettin gettin gettin gettin gettin rough and now we got
Futures down 1200 plus like like full-fledged panic is now officially in the market the us 30-year treasury is under 1% now this was another thing i was like i don’t think i’ve ever seen anywhere even close to a 1% number under 1% for the us 30-year treasury i don’t think i’ve ever seen this before and so i had to go back and definitely not in my investing lifetime
Have we ever seen the us 30-year treasury under 1% or anywhere even remotely close to that okay not even in the financial crisis not even in 2008-2009 it was anywhere close like you got like this is extraordinary extraordinary stuff going on okay and you know we got to ask ourselves is it 2008-2009 situation a massive global recession is this is this possible and i
Gotta say it is possible okay it is possible when i see this type of panic in the market i mean i mean you see something like rf you see what’s going on northern italy right now 16 million people quarantined right now like imagine just imagine for a moment if the us which remains to be seen if this rona situation gets a lot worse but just straight-up like if the us
Has to be shut down for extended period of time the whole global economy is gonna collapse there’s no other way around okay there’s just literally no other way around it the entire global economy is gonna collapse if the united states just has to like shut down all business for you know let’s say even if it’s for a few weeks but especially if we’re talking about
Several months if there’s no business going on the united states debt still has to be paid do right and guess what it’s hard to get the dominoes rolling in the right way again once they’ve started going in the wrong way and so if we got in that type of situation in the united states of america the entire global economy is gonna be in straight-up shambles okay i
Mean i mean if china gets in some trouble it hurts okay china’s got a big gdp you know over 12 trillion dollars like it’s a big gdp if china gets hurt it hurts a lot okay it hurts a lot i’m talking about company earnings i’m talking about just overall you know wealth moving around i’m talking about asset prices i’m talking about overall business i get hurts okay
If you’re gets hurt obviously it hurts it hurts less than china but it still hurts the united states gets hurt and everybody’s done it’s as simple as that okay united states is way too important to the global economy like if the us economy has to shut down for an extended period of time because of the ronis situation everybody’s done lately like i’m just putting
It like it’s just it’s just it’s not it’s not like it’s an argument like like this is just how it’s gonna happen okay but the the biggest question is how bad does it run a situation get or are we at like a peak fear for the rona situation does it get worse that’s the whole question and that’s the whole chips on the table right now and if it gets a lot uglier then
You know you know it’s just gonna be bad okay oil price is now it’s not an even worse it’s now down nearly 34 percent as i’m still prepping this with you okay brens now approaching down a 31% move and so you have straight-up panic in the markets along with the possibility that the us economy could shut down for an extended period of time and that’s what is a that
Is what’s very scary right now when you have this full-fledged panic in the market like this is this is not like a normal correction now at this point it was starting to act like a normal correction a move like we just had right now this is straight panic 31 33 % moved down in oil that’s panic move ok that’s nothing that’s not a natural correction it’s straight-up
Panic ok over 21 billion dollars were just wiped out of the crypto currency markets in the past 24 hours in the past 24 hours bitcoin fell over 8% in the last 24 hours other big digital coins such as aetherium ripple bitcoin cash posted double-digit losses and the losses are even bigger then obviously without that publication had it because i do went to coin desk
Bitcoins down over 10% right now etherium is down over 14% right now and this is just in the past 24 hours okay ripples down over 12% right now bitcoin cash is down seventeen and a half percent right now the us fed funds rates going to zero it’s going to zero there’s no other way to put it i mean they keep bringing it down it’s gotta go to zero that’s just you know
I don’t see any way around it as of right now the united states federal funds rate is gonna go to zero and it’s probably gonna go to zero very very soon okay know what can we learn about all this what can we learn about a situation like this we got to learn obviously to always keep cash on the sidelines okay i put out a video didn’t get any views unfortunately why
I’m cash heavy going into 2020 talking about cash talking about cash levels it is so vitally important and i know when it’s a hot market like we had into the end of 2019 even moving to the beginning of 2020 you gonna look really stupid holding a ton of cash you know like i got up to like 30 percent cash people like you need to have it in the market maybe there’s
Every all these stocks are going up left and right i’m like you know i got a lot of my money invest in the stock market but i got a lot on the sidelines why because something has to give eventually like eventually it’s just the way the economic system works it doesn’t go up in a straight line something happens in the ronis situation is the thing that happened the
Ronis situation it came out of nowhere it all sent it was like what is this i don’t know if that’s serious and you know obviously it’s been put out on the media and there’s still argument to be made i know elon musk’s just put out you know a tweet a few days ago it said something around like the ronis situation is you know panicking around that is stupid and i
Would agree panicking around it as stupid it’s definitely good to take precautions and things like that but you know for everybody to panic over the situation there’s a little insane okay but needless to say that’s the thing that came out of nowhere and that is just it’s throwing everything a massive curveball that you know pretty much none of us saw coming i mean
It’s just it’s just you know came out of nowhere and it’s just i don’t know we’re gonna see where it all shakes out and so it’s interesting because i went back and i watched this video that i put out over a year ago it was basically a video 70% chance of recession in 2020 it’s a video where i talk about why i believe there was a you know 70 percent chance we’d go
Into a recession in 2020 now watch this video back like a month or two ago and i was like no i was wrong about that doesn’t look like we have any recession on the horizon man was i wrong there and often you have a freak situation happened like with a obviously llorona situation and all of a sudden now it’s like now i’m starting to think you know it might it might
Be possible it might really be possible between myths of global economy’s slowing down i mean the the u.s. really slows in a massive way it’s just gonna take everybody down in the short term in a very bad way i mean the short-term pain will be immense it will likely be much worse than what we experienced in the back half of 2018 the back half of 2018 we had a very
Good-sized you know correction there this could be this could be a full-fledged crash like this could be a full-fledged crap there’s difference between a crash and a correction scenario whatever remains to be seen it’s nothing i can you’ll say oh i got a sell out of all my assets let me sell my house let me sell my stocks let me sell everything i have right now
Because you know oh it could be so bad there’s nothing that makes me want to necessarily do that but it does make me say i have to be very very disciplined with my buys and one last piece of advice i’ll give to you know anybody that’s watching this video and as newer to the financial markets or the stock market now is your chance to take stock market investing
Very serious way too often people want to get involved with the stock market start taking stock market and serious and like acquiring assets you want to start doing that when everything’s at all-time high and when everything looks so great that’s the worst time that’s the worst time to get involved with the market the best time to get involved with the market
Is when things are bad okay that’s coming from a guy that gets started in the great recession like that is the best time because one you get great deals like like you’re just going to get the best deal whenever the markets super bad you’re gonna get the best deals you’ll ever get it’s just the way the most years the economy’s gonna work the asset prices are going
To increase everything’s gonna be good but some years you get some silly pricing and we could start to get some silly pricing on stocks that’s one part the second part is you learn to get some like like like you know you you learn to get some guts okay you learned how to handle these situations you learn how to handle a volatile market you know it’s very easy
If you’re somebody that gets in the market in 2019 and stocks just go up and up and up almost every day seem like in 2019 right the real players you know are the people that can go through a volatile market like we had obviously 2008 2009 2011 was a pretty crazy market we had a pretty crazy time in 2015 i remember in the summer time of that year where there was a
Lot of worries out there and i remember apple stock fell the late $92 in that particular time you know that at the end of 2018 we had a pretty serious correction that scared a lot of people out of the market those are the type of markets you want to get involved with and those are type of markets you want to take stock market investing super serious the times when
Everything looks great it’s not the best time to get involved with the stock market it’s just flat out at the end of the day guys so anyways i want to hear your opinion in that comment section i don’t think i had anything funny for you guys sorry oh sorry about that but you know it is what it is serious video it’s on sunday night if it’s on sunday night you know
It’s gonna be serious like super serious okay thank you for watching have a great day
Transcribed from video
WE HAVE A HUGE PROBLEM.. oil, stock market, etc By Financial Education