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


To: anachronist who wrote (93782)4/23/2008 1:59:21 PM
From: Elroy Jetson  Read Replies (1) | Respond to of 110194
 
When the East Bay Municipal District rationed water due to a rain shortfall in the past it didn't indicate a flight into hard goods and it probably doesn't now.

Perhaps you meant to reply to this post instead.

Message 24524388

It's tough for me to see a major flight into hard goods when real estate prices are plunging.

I think the current "monkey see monkey do" in commodities with people trying to buy a two year supply of rice at the store is a media driven commotion.

We deliberately eliminated the multi-year storage of grain by the government in the 1960s and moved to a more "efficient" just-in-time system of distribution. Add in the ethanol subsidies and this delivery system becomes very tight.

This can easily be gamed by a bunch of jerks in an attempt to find profits in an otherwise bad market.
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