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

To: Tommaso who wrote (93749)	4/22/2008 9:17:34 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 110194

UN fears Somalia 'catastrophe' english.aljazeera.net

To: Tommaso who wrote (93749)	4/22/2008 11:31:21 PM
From: arun gera	Read Replies (1) \| Respond to of 110194

>The food problem is a world problem. The housing bubble was inside the United States and was caused by excess credit provided ultimately by the Federal Reserve.> The housing bubble is all over the world for the same reason. It was in UK, Ireland, Spain, India, China. Don't you see banks in trouble in UK Scotland, Switzerland? The speculative effect of all funny money/debt created by the US banking system will go into any markets that are on marginal balance between demand and supply. The ethanol diversion and unfavorable weather in Australia have created just the right amount of tightness. Food supplies can adjust easily with price. People shift diets to less expensive items or just eat less or waste less. Only the poorest who were on barely adequate diet are in trouble. Overall the world food supply was short by only 1-2 percent (without the diversion to ethanol). But with export bans by major countries, it will make the situation worse for the importers. In the housing market, Detroit market was not tight. So bubble never happened there. -Arun