SoCalsurfbum

Are Analysts Being Fooled By The Data?

Don't believe all of the rumors you read in blogs...

whoever wrote that line "I heard from a friend who heard from his father"... understands Letters of Credit as much as Sarah Palin understands Fannie Mae...

A Letter of Credit is, in it's most simple explanation, an escrow account for international transactions so that money isn't released until an order is fulfilled correctly. Banks would always accept them because it means money will be deposited in their accounts.

If this guy is talking about short term funding for his vessels, he is probably referring to his "Line of Credit" from the bank... which is completely different.

If the line of credit is what they are talking about then the Baltic Dry index is actually more of an indicator than you think... if he can't sail, there is less capacity and shipping costs should go up... but that isn't happening.

Yank... if you can't trust the US gov't statistics (which you shouldn't), why do you believe you can trust the Chinese gov'ts economic statistics? The very fact that China is doing a major economic stimulus proves that they are not hitting the 10% GDP number... which are you going to believe, government statistics or your eyes?