Commodities Are Crashing Like It's 2008 All Over Again

[marmar]

from Bloomberg:






Dear commodities investors: Welcome back to 2008!

The meltdown has pushed as many commodities into bear markets as there were in the month after the collapse of Lehman Brothers Holdings Inc., which spurred the worst financial crisis seven years ago since the Great Depression.

Eighteen of the 22 components in the Bloomberg Commodity Index have dropped at least 20 percent from recent closing highs, meeting the common definition of a bear market. That’s the same number as at the end of October 2008, when deepening financial turmoil sent global markets into a swoon.

A stronger U.S. dollar and China’s cooling economy are adding to pressure on raw materials. Two of the index’s top three weightings -- gold and crude oil -- are in bear markets. The gauge itself has bounced off 13-year lows for the past month.
Four commodities -- corn, natural gas, wheat and cattle -- have managed to stay out of bear markets, due to bad weather and supply issues. ................(more)

http://www.bloomberg.com/news/articles/2015-08-05/commodities-meltdown-hits-2008-levels-of-bearishness

[Warpy]

1. Meanwhile, the Dow has been flat for months

Hold onto your hats, folks, here comes another bust!

It's unlikely to be the big bust, but it looks like something's coming.

The big one will be the derivatives casino, and it will take everything with it.

[global1]

2. Are Commodities The Canary In The Cage?......nt

[Binkie The Clown]

3. The price of the commodities I buy in the supermarket sure are not crashing.

So if coffee prices on the commodities markets are down almost 45% then why is the retail price of a pound of coffee going up? Somebody is making a lot of money and it's not me.

[Fuddnik]

4. You can buy a pound?

I thought they made the containers smaller to about 14 oz.

[Binkie The Clown]

6. Truth is, I gave up coffee 15 years ago. I used it as an example.

I should probably stick to using examples I actually know something about.

[Warpy]

5. They're not going to get rid of those 12 ounce cans, either

"Pound" of coffee, my flabby old ass.

Even gas prices have not fallen to reflect the $15.00/bbl price drop since May.