It must be lonely being a China bear….particularly for those dubious about its longer term prospects, as opposed to those who might simply think its stock market is a bit ahead of itself even after its recent correction. Vitaliy Katsenelson, in an article at MorningStar, beings almost sounding a tad persecuted before he warms up […]
Read more...Some investors see the Baltic Dry Index, a proxy for the shipping rates for dry bulk cargoes, as an indicator of international trade activity. BDI is admittedly noisy, and so needs to be interpreted along with other information. Chinese imports have been a driving factor in commodities demand, which drives the BDI. The price of […]
Read more...Nouriel Roubini verged on apocalyptic during the course of the crisis, and was proven largely right. Now that he has softened his stance, some have accused him of moderating his tone as a result of his much higher profile. While that’s possible, a couple of factors seem more likely. First and foremost, much of Roubini […]
Read more...Served by Jesse of Le Café Américain Someone asked why Bernanke seemed so positive about the US recovery, and what he would do if his prediction turned out to be incorrect. The first answer is rather straightforward. He is ‘jawboning’ or trying to increase confidence in the system to motivate businesses to spend and consumers […]
Read more...This story on Bloomberg, about stockpiling of base metals by Chinese farmers and housewives, highlights a type of speculation that observers in the West haven’t considered deeply. Since these were purchases by individuals, sometimes in the form of scrap, it’s hard to ascertain how significant a factor this activity has been. If nothing else, the […]
Read more...Even though China keeps putting out cheery official numbers, its purchases of commodities are down, suggesting there is less to its stabilization than meets the eye. It’s early to say that this is conclusive, but there is a good bit of other anecdotal information and some firmer information raising questions about the true state of […]
Read more...On the surface, the particulars of this case seem simple. A Citigroup commodities trader who says he has a contract that could yield him a $100 million payment this year is crossing swords with the new Treasury pay czar, Kenneth Feinberg. The Wall Street Journal story portrays the pay deal for the trader, Andrew Hall, […]
Read more...While oil is a finite resource, focusing on the long term can blind one to near-term dynamics. There has been surprisingly little mention in the mainstream media of how large the current oil surplus is. The collective view seems to be that this will take care of itself in short order. But that may be […]
Read more...Um, how come this story is in the Sydney Morning Herald (as of about 20 hours ago) and not the US/UK business media? This is a pretty major development. Yes, commodities heavy Australia is most affected, but Oz is hardly alone in seeing the ramifications. While the US dollar is weakening, the Australian dollar has […]
Read more...One way of shaping the news is the framing of stories. Readers are sending articles on a daily basis pointing to a bullish bias in quite a few stories. In most, it not blatant, which is why I don’t parse them, here, in that it would seem like overkill. But in fact the subtle spinning […]
Read more...Readers may recall that it wasn’t all that long ago that China’s banks were sitting on big losses and the analysts debated how bad the mess was. In 2003, for instance, the damage was pegged at $500 billion, a stunning figure given the size of the economy, and meant the banking system was insolvent. Even […]
Read more...If Alan Greenspan were serious about rehabilitating himself, he could hire himself out to central banks and instruct their officials in the art of Looking Serous and Appearing to Say Important Things While Actually Communicating Nothing. This is a crucial skill for anyone in an important bureaucratic position. The Chinese could use a few lessons. […]
Read more...Andy Xie, writing for Cajing, questions the durability of China’s recovery. He argues that much of hte upsurge in lending, which was one of the developments that cheered commentators, is fueling asset speculation, in this case in commodities, Reports this spring has suggested that as much as a third of the new lending was going […]
Read more...You cannot make this stuff up. Even as of last summer, there were reports that gold at retail was priced at a hefty premium, often 20% or more, to professional prices. Greater convenience comes with a greater markup. The German gold vending machine reportedly update prices every few minutes and add a 30% upcharge. The […]
Read more...Are we seeing a rerun of early 2008 in diminished form, as least as far as oil prices are concerned? Reader Michael sent along an article by Dan Dicker that contends that oil prices are well ahead of their fundamentals, and that, as before, the oil bulls are taking considerable cheer from Goldman’s boosterism. A […]
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