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179 comments on DrumBeat: October 22, 2008

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mcgowanmc on October 22, 2008 - 9:54am Permalink | Subthread | Comments top

OK. Good Morning!

Now, where were we? Oh yeah, bond/stock collapse imminent.

You can tell by contrarian CW. MondayAM all problems solved.
Is it too late to get in? Bottom's in, climb aboard!

Yesterday PM. Paulson to loan unlimited dollars to mutual funds
i.e. the US now owns another part of(isn't that everything?) of our financial system.

And why do the mutual funds need the bailout? Cash on hand for redemptions +stock to sell should be enough, eh?

Baltic dry Index, signal indicator for worldwide shipping rates
is Still in collapse mode, down 88% from July with not a single uptick.

Investment Grade Corporate Bonds. Is there still such a thing?

"There is a very real risk that this Treasury Issue could force GDP return on new debt below zero. If that happens then the stability of the monetary system disappears immediately and you will see instantaneous and very large fails in the Treasury marketplace."
http://market-ticker.denninger.net/

Right now, only arrests at the very top can hold the center.

"an immediate and forced cut in all federal spending by fifty percent or more."

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PaulusP on October 22, 2008 - 10:51am Permalink | Subthread | Parent | Comments top

The Baltic Dry Index is "…an assessment of the price of moving the major raw materials by sea. Taking in 26 shipping routes measured on a timecharter and voyage basis, the index covers Supramax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain"

It also means that it does in part reflect the price of fuel (operating costs), which was at an all-time high in July. However I'm experiencing first hand the cargo market is weakening, especially for container feeders. I work for a crewing agency, furnishing shipowners with full crew services, which included flying seamen around the globe.

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Xav on October 23, 2008 - 1:48am Permalink | Subthread | Parent | Comments top

I remember reading last year, when the Baltic Dry Index was at its peak, that the shipping industry was fearing overcapacity, as lots of ships have been built recently. Shipyards had months or years of waiting lists.

Now with the drop in demand for shipped goods (oil, ore, Chinese toys,...) and the lack of credit for buying shipped goods, there is an over-overcapacity of ships.

Add the drop in fuel prices, and shipping prices are falling like lead in water.

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ptoemmes on October 22, 2008 - 10:55am Permalink | Subthread | Parent | Comments top

Kudlow (CNBC) and his damned mustard seeds. Do mustard plants have any nutritional value?

Pete

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Sterling925 on October 22, 2008 - 4:04pm Permalink | Subthread | Parent | Comments top

Quite a bit more than Kudlow's metaphore:

cabbage, broccoli, cauliflower, turnip, rapeseed, mustard, radish, horseradish, cress and watercress.

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179 comments on DrumBeat: October 22, 2008

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