Thursday, October 8, 2009

Commodity Bubbles

Reports of record Aluminum stocks on hand at the LME, Alcoa's results and comments that it " expects to see global aluminum demand rise by 11% during the second half of 2009." give rise to the usual skepticism at Crudewire.

Presumably that would be demand from the Automobile , Aerospace and Construction Industries.

This is a great economic drama really. Will the Central Banks succeed in forcing enough liquidity into the system, sufficiently reflating a balloon, commodities this time, that will somehow trickle down to the consumer, who starts to spend before the bubble pops?

That really works if you own the well. If you buy the gas and you're out of a job, not so much.

No doubt "speculator's" will be hailed for all they have done to save the world financial system.

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