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A 'canary down the coal mine' that predicted the 2008 crisis is signalling another crash
Business Insider ^ | 20 Jan 2016 | Will Martin

Posted on 01/21/2016 7:59:13 AM PST by Sgt_Schultze

A measure of international trade often seen as a bellwether for the global economy has crashed to its lowest level ever, fueling fears we could be heading for another 2008-style crash.

Back in November, the Baltic Dry Index dropped below 500 for the first time in recorded history, and it has kept falling ever since. On Wednesday morning it fell to a low of 369.

To put that into perspective, the index was as high as 1,222 in August, and it has fallen 84% from a recent peak of 2,330 in late 2013.

The Baltic Dry Index measures how much it costs to ship "dry" commodities around the world — raw materials like grain and steel.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: balticdryindex; bdi; economy; manthelifeboats; spithitsthespam; uscrisis
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To: Right Brother
Many millions of people thought that too, in 1865. If you owe something....someone else WILL call on it:


41 posted on 01/21/2016 9:27:08 AM PST by DCBryan1 (No realli, moose bytes can be quite nasti!)
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To: Snickering Hound

Finally, the sea levels will lower from their lack of displacing sea water and Obama will be able to fulfill his 2008 campaign promise.


By Jimmy! You’ve got it. take all the heavy cargo off those ships and the water level will fall! It’s like a fat man getting out of a bathtub.


42 posted on 01/21/2016 9:57:28 AM PST by Flick Lives (One should not attend even the end of the world without a good breakfast. -- Heinlein)
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To: Sgt_Schultze
If you feel like it, join in the Free Republic Caucus (each day)

Thank you.  Be sure to read the rules and follow them so your candidate will benefit from you vote.

LINK to Caucus 01/21/2016

Results of yesterday's Free Republic Caucus.  LINK
43 posted on 01/21/2016 10:00:49 AM PST by DoughtyOne (Free Republic Caucus: vote daily / watch for the thread / Starts 01/20 midnight to midnight EDST)
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To: Dark Wing

ping


44 posted on 01/21/2016 10:17:12 AM PST by Thud
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To: Mr. K

Amen. Been there, done that.


45 posted on 01/21/2016 10:18:55 AM PST by Retain Mike
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To: All


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46 posted on 01/21/2016 10:24:23 AM PST by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: Wonder Warthog
I would think that this drop is driven by the large drop in the cost of FUEL,

From what I read at Baltic Dry Index Falls for Eleventh Straight Day, the index is collapsing for two reasons:
[snip]"The dry bulk sector has taken a beating from the slowdown in Chinese business at a time when the sector is struggling with huge overcapacity."

Overcapacity can be corrected by mothballing ships. The slowdown of demand is the proverbial canary in the coal mine.

47 posted on 01/21/2016 10:25:17 AM PST by Oatka (Beware of an old man in a profession where men usually die young.)
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To: refermech

Lived in a 42’ container for 3 years in Iraq. It was armored up to 7.62mm, had a bathroom in the middle, A/C units and full electricity. I made it airtight to keep the dust out. It was two 16 x 8 bedrooms and a full bathroom in between. We even had a generator across the road. It was pretty sweet, especially after we ran our own phones and ISP in them.


48 posted on 01/21/2016 10:25:55 AM PST by Justa
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To: prof.h.mandingo

We went through this with the overbuilding of very large crude carriers for oil. It took a while for the market to absorb that capacity.


49 posted on 01/21/2016 12:05:02 PM PST by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: Leroy S. Mort

Yes, because it follows energy prices and those peaked in early 2008.


50 posted on 01/21/2016 12:15:54 PM PST by palmer (Net "neutrality" = Obama turning the internet over to foreign enemies)
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To: Cringing Negativism Network

Only problem with things returning here is going to be the inflexible floor on labor rates. As it stands, they might work if the non citizen surplus is sent home...


51 posted on 01/21/2016 12:19:29 PM PST by Axenolith (Government blows, and that which governs least, blows least...)
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To: Wonder Warthog
I would think that this drop is driven by the large drop in the cost of FUEL, due to the huge drop in the price oil......which is the exact opposite of what was happening in 2008.

I agree. And in 2008 the rise in oil was the straw that popped the debt bubble. There is some froth this time, but no giant bubble of fake securities. Moreover low oil will allow investment in the sectors that got hammered in 2008.

52 posted on 01/21/2016 12:20:26 PM PST by palmer (Net "neutrality" = Obama turning the internet over to foreign enemies)
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To: Mr. K

Sounds like hair splitting to me. He fell in or down a hole has the same meaning. I had no trouble determining his meaning. Your response was the one that was unclear. It made it seem that he did not understand the definition. I knew the meaning but I still looked it up to make sure there was not some bizarre other usage.


53 posted on 01/21/2016 12:34:11 PM PST by prof.h.mandingo
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To: LS

I remember having this convo with my broker in early 2008. I thought I was over shooting when i said the Dow would drop from 18300 to 9900. It went to 6600.

The problem is not knowing how much bad debt us going to unwind. Especially sovereign debt.


54 posted on 01/21/2016 12:34:46 PM PST by RinaseaofDs
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To: Wonder Warthog

I post as contrast to the position of this administration trying to spin the yarn of a booming recovery.


55 posted on 01/21/2016 2:57:57 PM PST by Sgt_Schultze (If a border fence isn't effective, why is there a border fence around the White House?)
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To: LS

Best wishes in your retirement. That will leave you more time to post and to write more books.


56 posted on 01/21/2016 3:07:23 PM PST by Sgt_Schultze (If a border fence isn't effective, why is there a border fence around the White House?)
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To: Sgt_Schultze

Yeah, if I’m not working at Taco Bell to stay alive :)


57 posted on 01/21/2016 3:26:46 PM PST by LS ("Castles Made of Sand, Fall in the Sea . . . Eventually" (Hendrix))
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To: prof.h.mandingo

The term is “canary in a coal mine”

I have never once heard “canary DOWN a coal mine” and that led me to wonder if he knows what it means.

There are too many illiterate writers these days. It’s a simple mistake a good editor would have caught too.


58 posted on 01/22/2016 10:08:26 AM PST by Mr. K
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