February 4, 2009
COMMODITY PRICES DON'T GO UP:
Mining Giants Face Tough New Times (Mark Scott, 2/04/09, Der Spiegel)
Analysts foresaw last autumn that a commodities downturn was coming, but even the most grizzled industry-watchers are shocked by the speed of the decline. Prices for raw materials such as iron and aluminum have plunged by more than half in the past year, while mining firms have seen their market capitalizations shrivel. The SPDR S&P Metals & Mining ETF is now down more than 70 percent from its peak last June.
Fixed oil prices and the accompanying psychology drove the commodity bubble, not underlying economic conditions. How's John Tierney looking now? Posted by Orrin Judd at February 4, 2009 8:15 AM