Plummeting Oil Prices Could Destroy The Banks That Are Holding Trillions In Commodity Derivatives

The Economic Collapse Blog ^ | 12/08/2014 | Michael Snyder

[Vermont Lt]

If you own both sides.

[Toddsterpatriot]

The upside is great for everyone.

Only for half.

The downside, not so much.

Except for the other half.

[AdmSmith]

1.I do not think that the banks will fall with the oil price, they do not (or should not)have open positions. Perhaps some speculator with the wrong bet will be bankrupt, but that is the name of the game.

2. Oil prices fell to a five-year low on Monday, after Morgan Stanley cut its 2015 forecast for Brent crude, citing oversupply.

The bank said Brent crude prices could average as little as $53 per barrel in 2015, although its base case scenario was for $70. This was down from an earlier estimate of $98.
http://www.cnbc.com/id/102247766

[drypowder]

http://www.shtfplan.com/commodities/banks-push-congress-to-insure-trillions-in-derivatives-americans-could-be-on-the-hook-for-absolutely-massive-losses_12082014

Banks Push Congress to Insure TRILLIONS in Derivatives: “Americans Could Be on the Hook for Absolutely Massive Losses”