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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: booyaka who wrote (57752)	4/9/2006 11:55:29 AM
From: russwinter	Respond to of 110194

Global liquidity conditions: bcaresearch.com

To: booyaka who wrote (57752)	4/9/2006 5:25:24 PM
From: andiron	Respond to of 110194

More on FT: so even metal producers know it is *ucking speculation.... Metal prices, like all commodities, they are cyclical, and I don’t see any reason to change the long-term planning price because prices are higher,” he said. Most copper miners base investment decisions on a long-term planning price of 80-90 cents a pound. However, the price has quadrupled in the past four years to about $2.70 a pound. But investors argue that mining companies’ conservatism is merely helping fuel higher commodity prices. “You have this standoff between the producers who think these commodity prices are not real, and are therefore not investing enough in new supply, and the hedge funds who are putting more money into the commodity market because they see that the producers are not reacting quickly enough by bringing on new supplies,” said one hedge fund manager.