The visible hand in economics

DOW 8500, BDI down 79%, WTF

Posted on: October 10, 2008

Or so says two of the blogs I often read for US economic information:

Market Movers (*)

The Big Picture (*)

I have to concur.

However, for New Zealand there is a big plus to this collapse in US economic activity – the huge capacity constraints on shipping have lifted (Market Movers).

Shipping costs have been restrictively high for our exporters for a long time. A fall off in import activity to the US has freed up ships, which leads to much lower shipping costs for our exporters. Add to this the lower exchange rate and our tradable sector is getting one hell of a boost moving forward.

Update:  Dow breaks 8,000 on the downside.

3 Responses to "DOW 8500, BDI down 79%, WTF"

If you are idle, be not solitary; if you are solitary be not idle.SamuelJohnsonSamuel Johnson

Practice has a logic which is not that of the logician.PierreBourdieuPierre Bourdieu, French sociologist

Anyone can do any amount of work provided it isn’t the work he’s supposed to be doing at the moment.RobertBenchleyRobert Benchley

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