Falling Copper Prices: The Doctor is Out
Bill Bonner

The bust in the economy ain't so bad either. Credit default swap spreads are widening. Bond yields are rising...especially in Europe.

The service sector in the US is performing below expectations.

Oh...and listen to this:

"More weigh walking away from mortgages," says The New York Times. As anticipated, people are warming up to the idea of stiffing their mortgage lenders. Why not? Millions of houses are underwater; let the mortgage company deal with them.

Delinquent mortgage payments have risen to over 10%.

The Baltic Dry Index is dropping, too.

And Dr. Copper is 'set for catastrophe,' says a copper expert.

Copper, you'll recall, is the metal with a Ph.D. in economics. It's the metal that you find in home wiring, refrigerators, offices, automobiles, cell phones - just about everything. So, when the price of copper goes down it means something. Usually, it means business is slowing down.

Copper has fallen more than 10% in 2010. It will probably go down a lot further. Chinese companies stockpiled the metal last year, causing its price to double. Now, they've got more than enough.

And if the world economy is still slowing down, which is what the Baltic Dry Index is probably telling us, you can expect the price of copper to collapse.

Stay tuned...

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America's most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind The Daily Reckoning.

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