How has the DEMAND went DOWN?

[Nice-Gook]

<style></style>I would really like to know.Rather how drastic was that? Simply putting,we all have our basic demand..Firstly we need to eat than we must dress and live somewhere.Obviously different people pay differently for how they go about doing that.My question is how much of that has really changed globally that we may sink into a depression.

 

[newyorker88]

<style></style>I would really like to know.Rather how drastic was that? Simply putting,we all have our basic demand..Firstly we need to eat than we must dress and live somewhere.Obviously different people pay differently for how they go about doing that.My question is how much of that has really changed globally that we may sink into a depression.

Lets put it simply, demand has gone down so much that alot of goods are stocked and piled up. It is a merry go round. If somewhere in the pipe that gets choked, everyone stops.

For your info, I am in commodities and raw materials. Prices for certain commodities dropped to 10 or 20% from their height 3 months ago. From this, I am sure you are smart enough to figure out the situation, all becos of inflated prices and artifical demand that started in 2006.

Demand is still there, only pricing issues.

Those who can hold will hold, those who cannot hold either sell at a loss or simply go bankrupt.

 

[Nice-Gook]

Lets put it simply, demand has gone down so much that alot of goods are stocked and piled up. It is a merry go round. If somewhere in the pipe that gets choked, everyone stops.

For your info, I am in commodities and raw materials. Prices for certain commodities dropped to 10 or 20% from their height 3 months ago. From this, I am sure you are smart enough to figure out the situation, all becos of inflated prices and artifical demand that started in 2006.

Demand is still there, only pricing issues.

Those who can hold will hold, those who cannot hold either sell at a loss or simply go bankrupt.

Thanks brudder.I am talking more of the artificial demand aka speculation here.You are right demand for basic needs will always be there.The chances are that it would increase instead.But what indeed that has gone wrong that we may face a global shit ?

....You are right, that demand is there but only the pricing is the issue.In other words 'correction'....which begets the real question.All the remedies that the political leaders are prescribing ; IS ONLY PROBING THE SPECULATIVE ELEMENT OF DEMAND UP... OR ?

 

[newyorker88]

....You are right, that demand is there but only the pricing is the issue.In other words 'correction'....which begets the real question.All the remedies that the political leaders are prescribing ; IS ONLY PROBING THE SPECULATIVE ELEMENT OF DEMAND UP... OR ?

Now, what the global leader are doing is trying to fix some shit left over from Bush mistakes.

Oil makes the world goes round. After the Iraq war, Bush and friends tried to sell oil recovered from Iraq. However, ask any oil dealers and they will tell you that break even cost for oil from Iraq is about USD110. Or somewhere there. Saudi is about USD25 for break even.

So what to do? Bring up the cost to breakeven level lah!

When people cannot afford the prices, and demand goes down DUE TO CANNOT AFFORD, that is when all hell break lose. Not becos there is no demand. But people cannot afford such prices.

We are at a correction level. And becos no one is buying, all money comes to a stop.

Just my way of seeing the market. Thanks for reading

 

[Nice-Gook]

Now, what the global leader are doing is trying to fix some shit left over from Bush mistakes.

Oil makes the world goes round. After the Iraq war, Bush and friends tried to sell oil recovered from Iraq. However, ask any oil dealers and they will tell you that break even cost for oil from Iraq is about USD110. Or somewhere there. Saudi is about USD25 for break even.

So what to do? Bring up the cost to breakeven level lah!

<style></style>I have no intimate knowledge of oil traders.But we all know Iraq is not a new player in oil production.Therefore logic dictates that Iraq must have been competitive in oil production during Sadam's reign.The only aspect that had changed is the country's risk factor.But how does that account for a huge break even point like USD110 ? Given that all infrastructures practically remains the same.It beats me.

 

[tookara]

USD 110 factors in the cost of the war and bush crony companies like halliburton and blackwater etc