Oil prices are not determined entirely by supply, demand, and market sentiment toward the physical product. Rather, supply, demand, and sentiment toward oil futures contracts, which are traded heavily by speculators, play a dominant role in price determination.
Replace the word oil with bitcoin in this sentence. And please remind me why the price of Bitcoin can't be determined in the futures market?
because is there is a oil blockade banning the sells of all oil. then even the futures market will see this and be on a downside not an upside. (those with active contract will be trying to sell them at a loss becasue the contracts wont fulfil so they will want any dumb chump to buy their empty bag of contracts off them)
and when the blockade finally gets removed for actual oil. there will be alot of people ready to sell and everyone clamouring over each other to sell before the next person, thus causing a dump
same goes for real estate. those holding mortgage derivatives know that they are holding a losing contract. and so while tenants are foreclosed on because they stopped paying mortgages, the investors will want their money out but unable to sell the house so they just foreclose on tenants and hoard unsellable real estate, leaving homes in disrepair.
then when real estate market opens again everyone will be clamouring to auction off dilapidated/unkept houses for $1 just to get rid of their contract but knowing the tenant still owes them full amount of debt tenant didnt pay.. because well thats what happened in 2008 in one way or another