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Article: Prices plummet but could rebound: the meltdown of the US economy has already impacted on commodity markets worldwide. Is the panic set to continue or will underlying demand reinflate prices? M J Morgan provides an analysis.(COMMODITIES)
- Article from:
- African Business
- Article date:
- December 1, 2008
- Author:
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Understanding and interpreting the consequence of economic events, even in the most normal of circumstances, is something that is usually only possible in hindsight. Just as few saw the financial meltdown of the last few months, so too nobody seems to know what is going to happen next.
The seesawing in both equity and commodity markets, even after unprecedented global government intervention and rate cuts, reflects this fact. Recent events are without any substantive corollary. Even the great crash of 1929 took place in a world that was as far away in substance as it is time. There did not exist then an integrated global economy, largely free-flowing capital ...