Wednesday, May 4, 2011
Cracks In The Commodities
The yield on the 10 year treasury is going pretty much nowhere, which is probably a good thing, as a rapid rise here will be pretty devestating. The problem now is who will buy when the Fed stops (assuming they stop in June as scheduled).
We are seeing the first signs of a crack in the commodity complex. It's way too early to call it a crashj, but it was the crash in commodities in 2008 that triggered the disaster that was to come a few weeks later. We may just see history repeat itself.