Gold Bull Run: The Fun Is Just Getting Started
The “digital economy vs. the hands-on economy.”
That’s what the talking heads are now calling sugar daddy Jerome’s (otherwise known as Fed Chairman Jerome Powell) “by any means necessary” approach to inflating the biggest asset bubble most of us will ever see.
In the real world, the debacle that is the U.S. handling of the COVID-19 virus is leading those in the real world to some all-too-real choices.
Schools are re-opening. Here near Austin, Texas, online learning was being mandated other than for religious or private schools. This week will be the first week parents get to decide to send their children to school or continue — if able — with the online option.
For parents who work, whose children were required to learn from home, child care costs make going to work an exercise in balance sheet management that can be overwhelming.
It’s not just parents dealing with the fallout from the shift to the “digital economy.”
Companies affected by the shutdown are experiencing real consequences. Consequences that continue to highlight the disconnect between the “digital economy vs. the hands-on economy.”
When I first got started in the resource space, a mentor and friend asked if I wanted to hear a joke. He proceeded to ask me if I knew how to make a small fortune in the resource space. He then delivered the punchline, by starting with a large fortune.
I had neither a large or small fortune to lose and was not amused.
Despite the "everything is awesome" take to the major U.S. indices, in the real world, everything is not awesome.
Take Arena Energy LP, which has filed for bankruptcy and plans to sell most of its assets to PE firm Lime Rock Partners & management group in a deal that includes $64.2M in cash.
The Texas-based driller filed for Chapter 11 protection to restructure more than $1B in debt.
That’s how you take a large fortune and turn it into a small fortune.