Credit Cruuuunch

Since mid-May, the Baltic Dry Index is down a whopping 65%.  Talk about a global slowdown!

Subscribe to Bespoke Premium to receive more in-depth research from Bespoke.

Comments

[Smitty]

http://www.ft.com/cms/s/0/6fa59546-8be5-11dd-8a4c-0000779fd18c.html

[Patrick Neid]

Slowdown?

I don't think so. More like getting back to reality. It needs to drop another 50-75% just to get back to 2005-2006 levels when the world was already going nuts shrieking and screaming that the Chinese were going to take everything that existed.

When it gets there we can then make a fuel surcharge calculation to figure a reasonable price.

If the world goes over the fabled edge this index will be trading under 1000.

[Don]

How about a log scale? That was we can see if the declines around 1995 and 2005 were about the same. From my simple observation, it looks like, at least in percentage terms, those two were pretty large, just like this decline.

[mike scornavacco]

Many people are going to need some serious help getting back their credit. Which is going to cause a serious need for expert help. There is much work that needs to be done here I have some Ideas they can be seen at http://www.revolutioncreditsolutions.com