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Suncor Energy Inc T.SU

Alternate Symbol(s):  SU

Suncor Energy Inc. is a Canada-based integrated energy company. The Company's segments include Oil Sands, Exploration and Production (E&P), and Refining and Marketing. Its operations include oil sands development, production and upgrading; offshore oil production; petroleum refining in Canada and the United States; and the Company’s Petro-Canada retail and wholesale distribution networks (including Canada’s Electric Highway, a coast-to-coast network of fast-charging electric vehicle (EV) stations). The Company is developing petroleum resources while advancing the transition to a lower-emissions future through investments in lower-emissions intensity power, renewable feedstock fuels and projects targeting emissions intensity. The Company also conducts energy trading activities focused primarily on the marketing and trading of crude oil, natural gas, byproducts, refined products and power. It also wholly owns the Fort Hills Project, which is located in Alberta's Athabasca region.


TSX:SU - Post by User

Post by Experiencedon Mar 13, 2023 11:45pm
494 Views
Post# 35336651

Seeds of Destruction

Seeds of DestructionOver the weekend we saw some large regional banks fail.  Some people here have been blaming this on the Fed in the US raising interest rates.  

Is this the probem?

Are there more ominous signs under the hood?

1....the sin that the Fed made is not increasing rates but keeping interest rates at zero for so long and thereby creating the inflation (along with Biden spending trillions) that needs to be stopped through high interest rates.  It is a well known fact that if something/anything is free it distorts asset allocation of things.  This leads to Point 2.

2....with interest rates so long for so long and lax Government oversight, the banks (and other people) sought to find ways to get a higher return and in doing so created a risky investment environment.  Sound like the precursor to the financial crisis of 2008?  YEP!!

3...as a case in point, SVB didn't even have a risk manager for the past year!!  No wonder they got into a situation where the bank collapsed.

4...the lines between banks trading with their own money as opposed to depositor money which was spelt out in Dodd Frank has not been enforced leading to the need for the US Government to start beginning bailouts.  The current bailouts themselves are sending/reinforcing a message that came out of 2008 - "banks you can take risks and make money and if your risks don't pay out then the Government has you covered"

I could go on - but here is the main message/warning

Right now we have many of the things that caused the financial crisis of 2008 taking place compounded by an environment of high inflation, rising interest rates and excessive Government debt and budgetary deficits....plus a much higher level of personal debt as percentage of disposible income.

Keep this in mind as you make investment decisions...
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