RE:US Banks starting to question the green alliance You know , I've been looking this article again and reading between the lines for what is really being said . Banks have more lawyers on staff than tellers , they can tie anyone up in court for years before you ever even get a trial date . I just don't see "the fear" of the bank being sued as any motivation , especially if there is money to be made . Think about that for a minute or two ...........
I have never known a banker that wasn't motivated by MONEY , an altruistic banker is the equivilant of a Unicorn , there's no such thing . So what makes sense here then ? Banks fear weak economies because thats when defaults happen and the banks have financial losses . At present bank algos continue to go after O&G prices and stocks , this is not based on fundamentals , its pure politics . This action is threatening both energy security and producers willingness to add the production that is so desperately needed and will also have economic consequences in the near future .
It seems to me that the banks would rather support and lend to the only sector with a hope of paying the debt off . Shorting oil and energy stocks is putting the bank at risk for very little gain not to mention O&G is the only intact leg left on the economic stool . An energy crisis on top of Powel's nonstop interest rate avalanche will wipe out the american and world economies screwing the bank business for years to come .
Obviously there are no adults in either Washington or Ottawa , if the bankers can't get the politicians to open their eyes and brain up then I fear they will destroy the world economy . When the threat of a nuclear WW3 is ignored because of automated trading then someone needs to look at how these algos are programed . I know trading on inside information is illegal for us but when you make the rules , then the rules don't apply to you and bankers never get busted for this offense .
So back to my thesis , does Jamie Dimon see something that everyone in congress is missing or is it just greed and an appetite to buy the forbidden fruit ? BTE has behaved surprisingly well consider past price history although debt has been cut in half , production is stable (but less than pre-covid) and all hedges run out in 100 more days . Even with oil in the $80's , BTE is printing money and after Jan 1st that FCF will only increase . This stock has always had my strongest conviction , as I said this has always been a 2023 story for me .