The Dry Bulk market has been destroyed. Those ships out there are better off docking and having their seamen smoking cigars all day, instead of wasting fuel on delivering goods to China. Better yet, they ought to fix their vessels with sails and just sort of float on the seven seas, until oil collapses.
As of Friday’s close, the day rate for leasing a Capesize vessel (the largest shipping vessel) ran down to 10,609 per day. Rates were upwards of $44,000 at the beginning of 2014.
Also, 5 year credit default swaps for the “Great Satan” nation of China are nearing Italian levels, up to around 138ish. Actually, Chinese 5 year CDS are now higher than Spain’s, a harbinger of assured doom if in fact the credit markets are right about China. Hell, everything runs on China, not Dunkin’ Donuts, from the steel markets to met coal to oil and of course to the dry bulk shipping. Perhaps the dry bulk markets are telling us something.
If it is, the sages who trade US futures aren’t made aware of it, thus far, as they are now higher by about 3 points.
Just to give you laymen folk a reference point, the disastrous economy of the UK possess a CDS spread of just 24; now extrapolate that against 138 and what do you get?
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Dr. Fly, I noticed from fryguy15 he posted about this ZeroHedge response to that Forbes article on China halting cash payments. Figured it was relevant for tonight’s festivities:
(from fryguy15, “It’s bogus”) http://www.zerohedge.com/news/2014-01-26/no-there-no-stoppage-cash-transfers-china
Yes, thank you. Forbes is a bucket shop
Jaysus
I’d like to slit Warren’s throat….but I’m not really sure why…???
He’s a demon. That’s why
The bear. She sniffs twice and bites once old chap.
Tuesday we get the enlightening. Not that crony capitalism was not thriving. Approval ratings are a bitch.
Socialism in the old sense used to be bearish. Or so we are all told. Could be the return of the peanut farmer.
Why is WMT firing 2% of the Sams Club slaves? Min wage increase by decree?
Why does the FTSE trade like an emerging compared to the DAX or SPY? Did not the Brits create the hand?
Perhaps this is the tune…
http://www.youtube.com/watch?v=ggFchei-S80