BDI

I posted the thought below on Russ Winter's Actionables.

I'm focused on the credit expansion coming out of china. I'm also watching the BDI for any sign of commodity buying slowdown. see http://shipping.capitallink.com/ It's back under 3k now, which might be a bearish sign. On the other hand, the Chinese authorities have done their best to intentionally blow a huge bubble in real estate to keep construction jobs, as well as reflating their equity bubble. The latter they seem intent on milking for all it's worth by lining up IPO's at astronomical valuations. I think they do their darndest to overheat their economy until a commodity price rise makes their malinvestments completely unfeasible.