RE: RE: How can this happen...... Personally, I would have preferred that they raised cash via a private placement instead of borrowing now.
I remember when Oilexco had loaded up on debt, ran into pipeline delays and then the fall in the price of oil by about 25%. The shorters squeezed them so hard, so fast. And then of course, their loan was called and they died.
As far as I can tell, we are setting up to have oil drop about $7/barrel over the next week. Cyprus just happened, and could happen again with a bigger country.
Risk vs reward. Personally, it got interesting when it fell into the low 1.60s, but 20 cents higher leaves me cold to it.