Tuesday, August 18, 2009

File another one under 'unintended consequences'

via Bloomberg:

Copper, nickel and other base metals stockpiled by speculative Chinese investors including pig farmers may be sold when "market sentiment turns," said Scotia Capital Inc.

Pig farmers in Guangzhou province were buying copper or nickel, Liu wrote, citing CCTV. Residents in Wenzhou city of Zhejiang province, "famously investment savvy," are reportedly using bank loans to stockpile copper scrap, with one merchant saying he has stored 20,000 tons, Liu wrote.

Housewives in Wenzhou may have stockpiled metals as "they just have too much cash on hand," Eramet's Deng said.

Did I mention that there might be too much liquidity out there?


rip off victim said...

Hey Clark, vis a vis the earlier discussion with the German doctor about rationality.

Clark said...

I guess I basically agree with that link. I do find myself wishing that O-bam would show little more spine, conviction and passion in the healthcare and financial reform debates, and I don't think I'm alone in that feeling. FDR would be a fine rhetorical model. It would also be especially nice if he had some more of that for campaign finance reform, but, alas, that always has to wait for the second term ...

More broadly of course my point is kinda the opposite -- less that emotions are part of the human animal than that rationality is only another animal emotion.