Oil just closed at NEGATIVE $37 (bankruptcies ahead)

[Joe Cassandra]

If you follow the financial market...

Oil just closed at NEGATIVE $37. Meaning, oil producers are paying to have their oil taken off their hands. (just 7 years ago, oil cost over $100 per barrel)

There are many people that think we will see a V-shape recovery once the economy opens up again. 

We're about to see massive bankruptcies in oil. 

...oil employs 500,000 Americans alone...many are losing their job.

...towns that boom thanks to oil...rough times ahead

...retirees living off oil dividends...broke

...banks financing these oil companies...losing money hand over fist

...holders of junk oil bonds and companies loaded up on debt...bankrupt

...countries that rely on oil production to make their economy run...recession

None of this is meant to scare anyone as there are still a lot of UNKNOWNS. 

But for anyone: 

1) thinking the stock market is just "UP" from here...be careful

2) thinking the economy is about to go back to normal...be careful

3) thinking this is just a 'short term' recession... be careful

I'm an optimist, but it's important to tread carefully based on external economic factors. Yes, this recession is not caused by real estate bubbles like 2008, but it will feel affects.

[Charles East]

Oil producers aren’t selling oil at negative prices, speculators are selling to close their futures positions prior to expiration because they aren’t able to or don’t want to take physical delivery of 1000 barrels of oil.