BusinessWeek Writes: Brazil’s Once-Richest Man Gets Ready for Oil Company Bankruptcy

 

OGX Petróleo e Gás (OGXP3:BZ), the oil company controlled by Eike Batista, is preparing to file for bankruptcy protection, putting $4 billion in bonds and loans into default. The filing could come as early as today, according to Bloomberg News, and would be the largest corporate debt debacle in all of Latin America.

It would also mark the latest chapter in the ignominious comedown of Batista, once the eighth-richest man in the world and the poster boy of Brazilian entrepreneurialism. During his glory days, he seemed to find rich gold mines with blithe ease, courted supermodels, and charmed and cajoled hard-bitten New York money men to throw in their lot with him.

Read The Rest Of The Article Here

I wanted to bring your attention to this cautionary tale for a couple of reasons.

1.  If you want to make it big you have to play big. Sometimes you crash and burn, but that is all part of a game. Mr. Batista has tried his best, but things didn’t work out. Trading in the stock market is exactly like that. Learn from it.

2.  You can be worth $30 Billion one day and lose it all in 16 months. At times markets don’t mess around. They can take everything you have within a short period of time.  This of course is my subtle way to warn you about today’s highly speculative and overpriced financial markets.   

3.  His demise might be the blueprint for the upcoming US decline. In fact, his financial setup prior to the collapse is the mirror image of the US Financial System and the Economy.

Too much debt, too much hype, too much manipulation and empty promises. The only difference is that the US has the ability to print unlimited amounts of money and the consent from its creditors to do just that (so far). Once that consent runs out (and it will), the US financial system will find itself in a very similar situation.

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!