Glencore – The Next Enron, Lehman Bros?

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  • I’m certain the first time most Americans heard the word “Enron”, they had no idea what it meant but came to know how much it cost taxpayers. A company called “Glencore” is quite possibly not just another Enron, but could end up the watershed event that Lehman Bros was to the “last” financial crisis.

It would come as no surprise to me that we discover that Glencore wasn’t truthful about its assets, has a far greater negative exposure to derivatives than is assumed now, and has many other serious problems that shall rise to the surface if and when this house of cards truly folds.

  • I’m not alone in my concern America has begun its worse economic, social and political era ever.
  • Yours truly could not have been more negative on high-yield (junk) bonds. The High Yield Bond ETF (HYG), saw its biggest weekly drop since Dec 2014 and closed at its lowest since Nov 2011 last Friday. Chasing yield will cost many dearly in the end, but none more than the 55 and over crowd.

While the “Don’t Worry, Be Happy” crowd and much of the financial media that gives them a platform would like you to think otherwise, the fact is, unless investors stage an incredible rally during the next two days, the three straight quarters of losses this year would be the worst since the year-and-a-half of sell-offs that ended in March 2009.

Petey the live chicken versus dead duck signing off!