Contango

Copper tests highs

China has been growing with a whopping yearly GDP of at least 10% for the past 4 years. Although voices questioning its stability are sounding louder and louder from both sides of the fence. From Treasury Secretary Paulson's last week comments to the G7 Finance Ministers statements, all seem to agree with Premier Wen Jiabao's statements, "growth is unstable, imbalanced, uncoordinated and unsustainable."

China; a runaway train

Two reports from Bloomberg on China caught my eye this weekend:

• China Raises Bank Reserve Ratio for 6th Time in Year
• China's Trade Surplus Probably Doubled in March to $20 Billion

The vultures are here

Vulture Bearded.
Source: vultures. homestead.com

Banks and hedge funds get ready to take over the coming wave of distressed institutions...

The tipping point

The 300 movie. Spartans pushing Persians off a cliff.
Source: gamespot.com

Reading Bloomberg's headlines today brought a chill down my spine.

• China Calls U.S. Import Tariffs `Unacceptable,' Affirms Right to Respond  

• Dollar Falls Against Euro, Yen as U.S. Adds Tariffs on Imports From China

• U.S. Stocks Fall on Housing, Rate Outlook, Leaving Dow With Quarterly Loss

• European Stocks Decline on U.S. Economic Reports, Led by Axa and Lafarge

• U.S. Treasury 10-Year Notes Drop for Second Week on Concern About Economy

• European Government Bonds Drop for Second Week on Interest Rate Concerns

• Asian Stocks Fall This Week on U.S. Economic Outlook; Sony Leads Declines

• EU Calls For `Immediate' Release of 15 U.K. Troops Seized by Iran in Gulf

• Bush Says the Democrats Are Pursuing `Reckless' Tax, Spending Policies

Are we at the brink of a recession? Or worse?