Ponzi Financing Involving Copper Trade Gone Wild In China
http://globaleconomicanalysis.blogspot.com/2011/05/ponzi-fin...Submitted by PeteD 24 months, 4 weeks, 1 day, 5 hours ago
Copper and Soya beans possibly being hoarded in China to use as collateral for local lending. This would not bode well for copper prices if there is an oversupply.
#1 - By cij, 24 months, 2 weeks, 19 hours ago.
Yes, there are reports that oversupply is also prevalent in the other metals. Looks like the correction a correction in commodities and AUD will continue for quite some time.
#2 - By PeteD, 24 months, 2 weeks, 18 hours ago.
Also consider what happens to loans when your collateral declines in value? Margin calls?
Even worse when the people sell off their collateral and hence have no loan backing at all.
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