Comments on: Baltic Dry Index Falls Another 10.7%, Down Nearly 86% From May http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down.html Sun, 22 Nov 2009 21:02:38 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down.html#comment-22011 Anonymous Fri, 17 Oct 2008 04:12:00 +0000 http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down-nearly-86-from-may/#comment-22011 well, this sucker is going down. The BDI is a pretty good indicator for the future. Coffee is down, oil is down, real estate is down, wish I had more money to pick up assets on the cheap. well, this sucker is going down. The BDI is a pretty good indicator for the future. Coffee is down, oil is down, real estate is down, wish I had more money to pick up assets on the cheap.

]]> By: alan von altendorf http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down.html#comment-21959 alan von altendorf Thu, 16 Oct 2008 23:26:00 +0000 http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down-nearly-86-from-may/#comment-21959 Yves,<br/><br/>Thank you for highlighting the crisis in LC. Astonishing how very serious a problem this is, and it proves that $ trillions have been wasted pushing on a string. Liquidity is not the problem. Velocity has collapsed. Yves,

Thank you for highlighting the crisis in LC. Astonishing how very serious a problem this is, and it proves that $ trillions have been wasted pushing on a string. Liquidity is not the problem. Velocity has collapsed.

]]> By: Don http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down.html#comment-21940 Don Thu, 16 Oct 2008 17:57:00 +0000 http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down-nearly-86-from-may/#comment-21940 Regarding agriculture: keep an eye on land prices, which have reached bubble proportions. <br/><br/>Grain prices (both spot/futures) have come down dramatically in recent months. Industrial ag. is highly capital intensive, depending on considerable debt for highly expensive equipment (e.g. combines), and imputs of reliance on fertilizer, pesticides, and diesel. Hog confinements and ethanol plants have sprouted up to excess capacity, which had the effect of driving up prices. Planned new ethanol plants are now be canceled.<br/><br/>Ag. land represents the collateral behind the debt. Should land prices come down significantly, the consequences would be great. Regarding agriculture: keep an eye on land prices, which have reached bubble proportions.

Grain prices (both spot/futures) have come down dramatically in recent months. Industrial ag. is highly capital intensive, depending on considerable debt for highly expensive equipment (e.g. combines), and imputs of reliance on fertilizer, pesticides, and diesel. Hog confinements and ethanol plants have sprouted up to excess capacity, which had the effect of driving up prices. Planned new ethanol plants are now be canceled.

Ag. land represents the collateral behind the debt. Should land prices come down significantly, the consequences would be great.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down.html#comment-21937 Anonymous Thu, 16 Oct 2008 17:44:00 +0000 http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down-nearly-86-from-may/#comment-21937 Low shipping prices are bad? Low house prices are bad? Low shipping prices are bad? Low house prices are bad?

]]> By: FairEconomist http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down.html#comment-21919 FairEconomist Thu, 16 Oct 2008 15:42:00 +0000 http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down-nearly-86-from-may/#comment-21919 Here's a site with the Baltic dry index to <a HREF="http://www.investmenttools.com/futures/bdi_baltic_dry_index.htm" REL="nofollow">2000</a>. There was a considerable stretch below 1000 in 2001, and it preceded 9/11, so it wasn't just 9/11 panic. I doubt it's inflation adjusted, though, so on a real basis the current index is probably approaching recession levels. The question is whether the plunge continues - if it levels off here, no big deal; if it keep going over 5% a day, very bad. Here’s a site with the Baltic dry index to 2000. There was a considerable stretch below 1000 in 2001, and it preceded 9/11, so it wasn’t just 9/11 panic. I doubt it’s inflation adjusted, though, so on a real basis the current index is probably approaching recession levels. The question is whether the plunge continues – if it levels off here, no big deal; if it keep going over 5% a day, very bad.

]]> By: Idaho_Spud http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down.html#comment-21918 Idaho_Spud Thu, 16 Oct 2008 15:39:00 +0000 http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down-nearly-86-from-may/#comment-21918 Dearieme,<br/><br/>There is an old joke that the quickest way to bankrupt a farmer is to weld his mailbox shut. <br/><br/>Agribusiness (think ADM) is a professional complainer with a downtrodden family farmer for a poster child. Dearieme,

There is an old joke that the quickest way to bankrupt a farmer is to weld his mailbox shut.

Agribusiness (think ADM) is a professional complainer with a downtrodden family farmer for a poster child.

]]> By: dearieme http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down.html#comment-21912 dearieme Thu, 16 Oct 2008 15:00:00 +0000 http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down-nearly-86-from-may/#comment-21912 Since farmers always grumble, I find farmers'grumbles unconvincing evidence. But if I were reforming US federal expenditure, I'd probably start with farmers' subsidies, and their quota and tarriff protections. Give 'em something to grumble about. Since farmers always grumble, I find farmers’grumbles unconvincing evidence. But if I were reforming US federal expenditure, I’d probably start with farmers’ subsidies, and their quota and tarriff protections. Give ‘em something to grumble about.

]]> By: Tortoise http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down.html#comment-21911 Tortoise Thu, 16 Oct 2008 14:53:00 +0000 http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down-nearly-86-from-may/#comment-21911 Further drops:<br/>(index) (% change) <br/>BALTIC DRY INDEX 1.506,00 -6,75<br/>BALTIC CAPESIZE 1.842,00 -7,53<br/>BALTIC HANDYSIZE 771,00 -6,32<br/>BALTIC PANAMAX 1.186,00 -9,40<br/>BALTIC SUPRAMAX 1.254,00 -3,09<br/>BALTIC CLEAN TNK 1.199,00 0,50<br/>BALTIC DIRTY TNK 1.322,00 0,08<br/>BALTIC EXCH LPG 27,56 <br/>BALTIC PALM OIL 73,79 <br/><br/>The drop in shipping rates is taking panic proportions.<br/><br/>Maybe China is taking a lesson from the Big Boys and is giving overextended suppliers and shippers a good beating to remind them who is boss. Further drops:
(index) (% change)
BALTIC DRY INDEX 1.506,00 -6,75
BALTIC CAPESIZE 1.842,00 -7,53
BALTIC HANDYSIZE 771,00 -6,32
BALTIC PANAMAX 1.186,00 -9,40
BALTIC SUPRAMAX 1.254,00 -3,09
BALTIC CLEAN TNK 1.199,00 0,50
BALTIC DIRTY TNK 1.322,00 0,08
BALTIC EXCH LPG 27,56
BALTIC PALM OIL 73,79

The drop in shipping rates is taking panic proportions.

Maybe China is taking a lesson from the Big Boys and is giving overextended suppliers and shippers a good beating to remind them who is boss.

]]> By: john bougearel http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down.html#comment-21910 john bougearel Thu, 16 Oct 2008 14:52:00 +0000 http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down-nearly-86-from-may/#comment-21910 http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_gilbert&sid=a9cgFg6k.4Ds<br/><br/>BN's Mark Gilbert addresses "No Bank Left Behind" program who are hoarding carrots from Main Street. http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_gilbert&sid=a9cgFg6k.4Ds

BN's Mark Gilbert addresses "No Bank Left Behind" program who are hoarding carrots from Main Street.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down.html#comment-21909 Anonymous Thu, 16 Oct 2008 14:36:00 +0000 http://www.nakedcapitalism.com/2008/10/baltic-dry-index-falls-another-107-down-nearly-86-from-may/#comment-21909 Is it falling commodities prices that are leading to restricted credit on cargoes or vice versa? Is it falling commodities prices that are leading to restricted credit on cargoes or vice versa?

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