The Weekly Summary - April 26 2020 Edition
The Weekly Summary - April 26, 2020 Edition

The Weekly Summary - April 26 2020 Edition

By tvlachak | The Weekly Summary | 27 Apr 2020


Issue 3.0 / April 26, 2020

Economy

We keep hearing that these are unprecedented times because of the coronavirus global pandemic. And on April 20, 2020, we experienced another economic first. History was made as oil prices traded in negative territory as the benchmark price for crude oil in the United States dropped down 300% to -$37.63 a barrel. Technically, this meant producers would have to pay buyers to take their oil. This drastic price drop was caused mainly from a massive oversupply, a Russia-Saudi Arabian price war, and a dramatic decrease in demand with more and more people not driving. Combine this with a poorly timed contract schedule and it sent prices of oil commodities down to all-time lows.

Joshua Brown, a professional money manager in his third recession, gave his thoughts after crude prices dropped below zero on a blog post, the day oil went to zero. Gabor Gurbacs made the case for cryptocurrency saying, “Maybe it's time for some self-reflection for those that say Bitcoin is too volatile compared to other assets. Crude oil, the world's most traded commodity, fell ~40% this morning and lost 85% YTD in 2020.”

Here is an eerie video, like a scene out of a blockbuster Hollywood movie, showing several oil tankers stuck off the Los Angeles coast.

So at the gas pump, this may be great for consumers who will pay less at the pump for gasoline. However, this is very bad for oil producers and smaller American oil companies who are challenged to continue drilling and refining.

Jim Collins at Forbes thinks the reason is obvious, the oil ETF, USO, is the culprit behind oil’s massive plunge. He follows up with two more articles on the USO oil ETF here and here. Collins is even letting us take a peek at his oil industry stock research on Twitter.

Crypto derivatives exchange FTX founder and CEO Sam Bankman-Fried said there was “a lot of demand” for oil futures, so FTX launched crude oil futures.

Billionaire Carl Icahn made some money off these low oil prices by buying cheap on Monday’s plummeting historic lows. Meanwhile, amateur investors on the Robinhood and SoFi Invest trading platforms rushed into the struggling USO oil ETF that isn't even tracking the price of oil anymore. Ramit Sethi, author of I Will Teach You To Be Rich, said, “So many investor novices asking questions about how to profit from oil prices on investor forums... I bet 95%+ of them do not have a basic diversified portfolio.”

Or you can do what Tracy Alloway, a managing editor at Bloomberg Markets, did by buying an actual barrel of crude about five years ago.

The US Senate approved an additional half a trillion dollars to bail out small businesses, hospitals, and Covid-19 testing.

Existing U.S. home sales slumped almost 10% in March, but it will get worse as house sales slow because of the coronavirus.

Investor, innovator, and creator Marc Andreessen recently provided advice to governments and corporations by posting an essay on the West’s lack of preparation and disorganized response to the coronavirus pandemic. Andreessen feels that it’s time to build things.

But as this economy continues to get battered, there is hope with this 11-year-old kid who is using blockchain-based tokens to spread kindness globally.

Personal Finance

Equifax, Experian, and TransUnion, the big national credit reporting agencies, are offering free weekly credit reports until April 2021 at AnnualCreditReport.com to check your financial health.

Contactless payments have increased in popularity as people try to avoid germs by using cash and credit cards. Small businesses have noticed about a 30% increase in Apple Pay. Paypal, Venmo, and Zelle are also gaining traction.

Student loan interest rates have fallen dramatically. This is good news in uncertain times for the 43 million Americans holding $1.5 trillion in outstanding debt accumulated in the past decade.

As of this writing, the U.S. government has paid $157.9 billion in 88 million stimulus checks. It appears that the direct deposits sent out by the IRS to individuals are starting to hit the economy. This money is arriving and being put to good use by households that have been waiting for it.

Investing

Anybody having regrets for not pouncing on Bitcoin when it was at $3800 this year?

It’s difficult to make a profit in a bear market. A good investing approach? Survive as a bear, profit as a bull.

This is how you build generational wealth. 20 somethings who invest strategically now will see massive financial benefits come at ages 30-40.

Bitcoin is the Future, not gold.

Cryptocurrency

Billionaire Mark Cuban reveals when he would buy Bitcoin.

$25 million in cryptocurrency stolen by a hacker who then returns it.

An EOS-based wallet app shuts down, leaving $52 million in user funds stranded.

Even in cryptocurrency’s short existence, another economic record was set last week. Tezos surpasses EOS for the first time ever. As a reminder, you can earn some free EOS on Coinbase.

Similar to the Coinbase Learn and Earn program, NewsCrypto has teamed up with KuCoin to push a new Blockchain education program that earns an exclusive mini-diploma.

A new calculator tool lets users explore staking scenarios on Ethereum 2.0.

Want to place your own branded cryptocurrency exchange on your WordPress install? Now you can with the ‘Crypto Exchange’ plugin that utilizes Totle’s API.

Three easy steps to learn more about decentralized finance.

Tether (USDT) has become Ethereum’s largest stablecoin.

Video Games and Multimedia

U.S. sales in video games, hardware, and accessories increased 35% annually in March to $1.6 billion as the lockdown kept people indoors.

Facebook gets into video games with a new app.

Nintendo Accounts are reportedly getting hacked en masse: lock yours down now.

Free PS4 video games! Sony is offering Journey and UNCHARTED The Nathan Drake Collection for free in their new Play At Home Initiative, running until May 5.

Get free DRM-free classic and indie video games at GOG.

Rapper Travis Scott sets ‘Fortnite’ all-time live viewers record.

Stream all the Battlestar Galactica TV Seasons for free including mini-series and movies.

Learning

Other Things I’m Reading

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tvlachak
tvlachak Verified Member

I'm a student of personal finance, investing, cryptocurrency, NFTs, & blockchain. I'm currently learning and thinking in public on The Weekly Summary. I'm also a foodie that loves fitness.


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The Weekly Summary

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