26.10.2010 - Falling velocity of commodities
From WSJ: Investors are becoming pretty familiar with the notion that the velocity of money collapses in a liquidity trap, which is to say when interest rates drop to zero. But the velocity of commodities also falls when official interest rates hit the lower bound, according to John Hussman, manager of an eponymous fund. Put another way, investors hoard commodities when interest rates are low enough, squeezing prices..............................................Full Article: Source
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