Tuesday 1 September 2009

Baltic Dry Index

China is hitting the brakes. A lot has been opined if this is shown in the Baltic Dry Index, but if this really matters for stocks is another question.
Even better: the action with AIG, Fannie and Freddie has nothing to do with what happens in China.
But everything with the money pushed into the room and used by a small band of traders to move things around.
Not only in the States.
I remember an article stating that 170 bln USD of bank loans where finding their way to the Chinese stock market.
Another thing of course is what happening if China want to buys things these days. They are becoming such heavy weights that they move markets in one or other direction. And apparently the Baltic Dry Index is reacting to this.
The Chinese hand is becoming more visible every day in the markets. Upturn or downturn, they are moving prices.
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