Over-supply is a harsh condition. Demand destruction is part of the self-correcting mechanism, but sometimes over-supply is so extreme, once-hot commodities become a burden to store and are literally sent to the scrap pile.
Given that most of the people in the world live in sub-par housing, this film footage is hard to watch:
The point is vividly made though. Remember all those commodities that the world was gobbling up a couple of years back? The best we can hope for is that the debris is now recycled and not just sent to the landfill. Sadly, given that bulldozers are the tool of choice here, I doubt recycling is a priority.
Cory’s Chart Corner
- Boom-Bust repeat. History calls B.S on "it's different this time", it's always different.
h/t Jessie Felder
about 15 hours ago
- Very impressive...however, given we're a consumption led economy, robots will become just another channel of wealth… https://t.co/OcCREIZbuL
about 18 hours ago
- What determines an inverted yield curve w/QE distortions and a short end at 1.25%...does the 10 yr really have to g… https://t.co/9NEwz1H25x
about 3 days ago
- Boom-Bust repeat. History calls B.S on "it's different this time", it's always different. h/t Jessie Felder
“An explosive critique about the investment industry: provocative and well worth reading.”
“Juggling Dynamite, #1 pick for best new books about money and markets.”
“Park manages to not only explain finances well for the average person, she also manages to entertain and educate, while cutting through the clutter of information she knows every investor faces.”