Baltic Dry Index (BDI) is one of the world's most followed indicators of the state of the global economy. It is an index that shows how much it costs to ship raw materials by sea. BDI is known as a leading bathroom suites indicator early shows where the economy is headed. For bulk raw materials (ores, etc.) are the basis of economic activity. Zero Hedge notes today that the BDI the past month have fallen back to near its lowest level in a year. It is also about the steepest decline since the fall of 2008. Summer 2008 was the BDI up at record highs above 10000, then quickly collapse bathroom suites down to 1000 levels. In 2009, as a slight recovery, but apparently it has slowed precariously in 2010. This suggests that the "green shoots" in the global economy bathroom suites looks set to wither. As the recovery bathroom suites of the economy as the Riksbank sees when they raised rates the other day risk being transitory nature. Yesterday also latest jobs data from the U.S., which shows that there were fewer new jobs than expected in the private bathroom suites sector. Certainly looks the official unemployment rate in the U.S. to be falling to 9.5%, but that is an illusion caused by participation in the workforce declines. Many have therefore given up the job search entirely and is no longer available for work. At the same time reduces bathroom suites industrial orders in the U.S. sooner than expected. All these figures confirm that we will most likely face a double dip in the global economy. [Other blogs shipping, transport, unemployment, usa, industrial production]
Flute-> One thing that should be considered bathroom suites when looking at the prices of the index such as BDI, steel prices, pulp etc are "produktionskapitciteten" (in this case the number of boats.) During the period bathroom suites 2005-2008 was built on the Earth's revolutions bathroom suites huge number of ships and far in excess of scrapping and we are now in a position to clear excess capacity on the ship and I put a tia on the ocean freight does not become a sector that hangs up in the future upturns, due to over-capacity, but they will have "permanent" recession (within limits of course) Major similarities can be drawn to the paper production in 1999-2001 when there was a hefty boom for our paper mills. But it was also true that it started much new capacity and thus was then paper an activity that went down in the economy 2002-2003 but then had no good at all in the economic boom of 2005-2008. It is only now that it is once again in equilibrium, eg manufacturing bathroom suites of pulp and consequently so now hangs pulp prices with the economy bathroom suites again. Reply Delete
Stockman: Sure there are a lot of excess capacity on cargo ships. But even though a lot of ships are mothballed now falling freight rates again. What is interesting now in terms of the BDI is that it went up in 2009, but now seems to turn down again, suggesting that demand bathroom suites is decreasing. Reply Delete
"Mothballed", well ... I think the people who own a freighter would carry goods with it. Until then it is scrapped. Flag BDI can obviously signal the decline in konjunktuen (which probably should be now that many government interventions pulled bot) But a falling bathroom suites / low BDI can also signalisera bathroom suites shipyards and their customers despite the economic upturn last year and then produced new boats that are now coming to market where the demand exists. Supply and demand. Reply Delete
Though it seems to be way premature to draw any conclusion .... Freight rates have fallen about as much in October 2009 and February 2010 ... There seems to be a certain bathroom suites periodicity .... Even sawtooth. Reply Delete
If this could be that we are entering a double dip (or something worse) then the well central bathroom suites bank to start lowering interest rates again (if they managed to raise slightly). Feel like floating interest is to focus on even further ahead, or what do you say? Reply Delete
Anonymous 2010-07-05 11:05: Though the case has not been as fast in the preceding sawteeth. Alex: The interest rate is hard to predict right now. Just because the Riksbank may be forced to cut the repo rate again does not mean that mortgage rates are falling. The spread between the repo rate and the interest rates on mortgage bonds may increase if they start to be perceived as riskier. In addition, there are differences between long and short rates. Expect that things can change in unpredictable ways. Reply Delete
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