Armageddon put off
Finally Greece didn’t bring Armageddon to the financial markets, at the very last moment an agreement was reached, but let’s admit it wasn’t a big surprise because nobody wanted Europe to collapse. The interesting things are happening in the raw materials market at the moment: the CRB index went below the 2009 level, the last time it was this low had been in 2003. This may signal bigger problems as both the economy’s contraction and overproduction can be the reason of the index’s fall. Due to the slowing down of the Chinese economy demand for raw materials is shrinking, but the capacity of raw material producers stays the same. This means that an oversupply meets decreasing demand – and the result can be nothing else but falling raw material prices. The problem is that many emerging countries are highly dependent upon these raw materials. This might have negative influence on developed countries too…
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