October 23, 2008

ECONOMIC RULE NUMBER ONE...:

Commodities plunge, roil world markets (Patrice Hill, October 23, 2008 , Washington Times)

"The oil crash hits oligarchs, dictators and Wall Street," said Martin Hutchinson, analyst at Breakingviews.com. "The price of oil has been cut in half from the peak, and could fall further. While U.S. consumers, Detroit's carmakers and airlines celebrate, there will be a raft of losers," he said, including "imprudent energy-fed regimes, alternative energy suppliers and Wall Street," where energy stocks such as Exxon Mobil and ConocoPhillips led the bull market that ended a year ago.

Commodity-rich nations that enjoyed booming demand for their exports of oil, wheat, soybeans and other staples also have met sudden calamity in the past three months as commodity prices fell precipitously from record highs reached in July. Strong growth in Brazil, Russia, Mexico, Chile and Argentina in recent years was tied to their robust exports of such raw materials. In some regimes, the abrupt reversal of fortunes is testing a shaky commitment to free markets and investors' rights.


...don't base your investments on the advice of Pop Malthus and Dr. Ehrlich.

Posted by Orrin Judd at October 23, 2008 7:38 AM
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