Commodities Like a Balloon After a Pin is Stuck in It

Balloon Pop with a Pin

Confidence is at rock bottom. No one wants to be long any commodity. - Jamie Craggy (source Bloomberg)

It appears that New Deal Democrat maybe right on possible deflationary recession.

Oil, Copper, Commodities in Freefall as Economic Woes Deepen:

Crude oil and copper led a drop in commodities, extending a record quarterly decline, on expectations an economic slump will sap demand for raw materials.

Oil and lead headed for their fourth weekly retreat and copper headed for its biggest slide since 1986. The S&P GSCI index of 24 raw materials has fallen 9.6 percent since Oct. 17, adding to a third-quarter drop of 28 percent, the gauge's worst performance. Global equity markets also tumbled.

This is after OPEC slashed production by 1.5 million barrels today.

Commodities pricing shows the latest, but the downward trend is dramatic.

Pop goes the bubble. Also note that hedge funds may be dumping assets right and left due to their predicted demise.

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Great, there goes my plan

For an alternative store of wealth.

Maximum jobs, not maximum profits.

each one different

and I am just not one to give advice but right now Gold is up, go figure. Everything I have read on gold from analysts implies baffled, bottom line, on what's going on.

I guess there are two different markets, physical Gold and paper gold. Metals are more unique in that they are sometimes seen as safe haven...but in this market, I personally cannot figure up from down and many people who really are good forecasters are predicting different things on top of it. (inflation, deflation, depression, mild recession and so on).

Other commodities, I suspect NDD's deflation (immediate) analysis seems to be right. If you recall NND talked about oil prices crashing when everyone was writing about $200 oil and what is good and be glad he posts on EP is he analyzes things from the raw economic indicators, which I guess I should do more of myself. ;)

LIBOR rises

NC has the bloomberg quote and some comments. That's incredible considering the money helicopter.