Right, so if we’re not blaming the squid we may as well spend a bit more time on China. Whack-a-mole finance can have a long reach after all and may very well be skewing LME copper price levels which, instead of reflecting the LME stock position, are maybe reflecting all of that copper sitting somewhere in China, often tied up in tricky financing deals in the shadowy sectors of the economy.
What remains interesting is the implicit and very sensible worry that all of that supply won’t stay under wraps forever. Read more
An interesting chart from John Kemp at Reuters on Monday (click to enlarge):
FT Alphaville is reading Robert Harris’ The Fear Index at the moment, and would like to take this opportunity to recommend it as required reading for anyone who enjoys a good Jason Bourne style adventure, especially when set in the context of modern market meltdowns.
Though, it’s actually come to inspire the plot to our very own action-packed markets adventure, one we’re calling “Dark inventory: The ultimate financial frontier.” Read more