04.10.2011 - Commodity price falls arenít all bad news
Thereís a grain of good news in the ugly market action of the past couple of months. Commodity prices have been falling. The drop in raw material prices no doubt reflects investor gloom about global economic prospects. But thatís only part of the story. There also seems to have been a significant component of speculative excess in commodity prices. How much is hard to determine. For instance, copper hasnít just been a key input in the Chinese construction boom, but has been used as a vehicle for skirting bank lending restrictions imposed by the Chinese government..............................................Full Article: Source
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