For many consumers, the notion of a "cartel" can seem quite scary.
The OPEC cartel spooked the oil markets so badly in the 1970s that
gasoline prices surged as supplies grew scarce. Yet for industry
producers, a cartel can be a wonderful thing. Controlled supply can help
insulate them from price wars seen in most competitive industries.
So when news that a cartel of potash producers was unraveling hit the headlines, shares of
Potash Corp. of Saskatchewan (NYSE: POT) quickly
plunged from $40 to $30. News that the cartel may be back in place
might quickly push this stock back up to the $40 mark.
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