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Baltic Dry Index Drops Another 1.9%, Hits 1,795

Tyler Durden's picture

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Thu, 12/23/2010 - 09:38 | 825848 Oligarchs Gone Wild
Oligarchs Gone Wild's picture

The Bernake Man

Its 4 PM on POMO Monday
Heatmap is greenin again
There's a bearded man sitting next to me
Making love to his keynesian sin
He says Timmay sell me the 30 year
I'm not really sure how low it goes
But it's treasonous,falacious and I studied it well
When I wore an Ivy League robe
Oh Quant Quant Quant, Q's Option spreads
Well we're all in the mood for record bonuses,
and you've certainly got us kowtowed.
Oh Blow us a bubble, you're The Bernanke, man.
Blow it for us right now.
Now Lloyd at the windows a friend of mine
He gets me my POMO for free
And he's quick with a tentacle and steal your last dime
But there's some place that he'd rather be
The Bernake I believe this is killing me
As a smile ran away from his face
He says I'm sure I could be that guy you call god
If Zero Hedge faded away
Oh Quant Quant Quant, Q's Option spreads
Now Timmays is a big eared lunatic
Whos never had a thought of his own
And he's talking to Hu who's made him his bitch
And he probably will be for life
And the peasants are learning gardening skills
As the Oligarchs slowly get bailed
Yes they're sharing a moment they call irony
But it's grander than buying the dip
Well we're all in the mood for record bonuses,
and you've certainly got us kowtowed.
Oh Blow us a bubble, you're The Bernanke, man.
Blow it for us right now.
It's a pretty good day for no volume at all
As the fund manager loses his job
Cause he knows that it's Ben that they're comin to see
To forget about debt for a while
And the soverign spreads grow out of control
and the inflation threat looms near
And the serfs continue to dwell in their homes
Saying man where did Freedom go?
Oh Quant Quant Quant, Q's Option spreads
Well we're all in the mood for record bonuses,
and you've certainly got us kowtowed.
Oh Blow us a bubble, you're The Bernanke, man.
Blow it for us right now.

Thu, 12/23/2010 - 12:16 | 826173 DoChenRollingBearing
DoChenRollingBearing's picture

Yet another brilliant ZH song / poem / work of art.  Clean it up a bit, get Billy Joel to sign off on it and submit it to Decca (or whoever does music for money these days), and you have a winner!

+ 100

Thu, 12/23/2010 - 09:39 | 825849 westboundnup
westboundnup's picture

Something big's a commin'. 

Thu, 12/23/2010 - 14:37 | 826560 midtowng
midtowng's picture

That something big isn't global trade. We are a hair away from April 2009 levels - back when everyone thought the world was coming to an end.

Thu, 12/23/2010 - 09:41 | 825855 Id fight Gandhi
Id fight Gandhi's picture

Baltic dry and ecri only matters when they're going up. Ignore all bad data. Carry on.

Thu, 12/23/2010 - 09:49 | 825875 snowball777
snowball777's picture

Thanks, Mini-True!

Thu, 12/23/2010 - 10:56 | 826014 israhole
israhole's picture

Check out this guy's response.  NOOOOOO!!!!  :)




Thu, 12/23/2010 - 13:04 | 826276 Walter Socheck
Walter Socheck's picture

LOL! Now if only U.S. & European politicians, banksters, and all of the hard working, corrupt, "civil servants" at the Treasury, SEC, CFTC, etc. could voluntarily follow this guys’ lead.... of course most patriotic citizens would undoubtedly request that those cushy desks & chairs, be replaced with chards of glass & rusty barbed wire. Oh, may I also suggest doubling the height of the balcony drop point as well...


Thu, 12/23/2010 - 17:30 | 826988 RockyRacoon
RockyRacoon's picture

Your list of possible contestants is not long enough... and the height not nearly so high as it should be.   Let's look at them leaping from the top of at least 10 stories.

Thu, 12/23/2010 - 09:46 | 825864 doolittlegeorge
doolittlegeorge's picture

the only index in post world war II history to "post a zero print."  i "find it very interesting that gold stocks that produce no gold whatsover" have a "valuation."  there are of course MANY of them and "their valuations seem reasonable for producing absolutely no gold whatsoever nor any hope of producing any gold whatsover EVER."  i do NOT recommend "shorting anything when the so call Fed prints money" for "the usual reasons."  But that's because "as a veteran i believe shorting government debt to pose an existential threat our boys in the field."  And needless to say "the Admirals, Generals and Presidents that command them." 

Thu, 12/23/2010 - 09:49 | 825874 Oh regional Indian
Oh regional Indian's picture

From the day the BDI hits triple digits, mark a month and watch the fireworks.

Why is it so critical an indicator?

I see it as the Vix on the "hard" side of the global economy. It is a direct, incorruptible measure of Supply chain risk. Simple.

When it sinks, like it is now,  producers have lost market confidence. And it is a leading indicator since there is a lot of lag in global shipping, long-term contracts etc.

Momentum in the BDI is kind of like the very things it tracks.

Capesize ships take a long time to turn-around.



Thu, 12/23/2010 - 10:07 | 825917 snowball777
snowball777's picture

"Now, will that be black or white?"

Yes, I mean maybe. ;)

Thu, 12/23/2010 - 10:17 | 825935 Oh regional Indian
Oh regional Indian's picture


Classic! ;-)


Thu, 12/23/2010 - 12:19 | 826176 DoChenRollingBearing
DoChenRollingBearing's picture

ORI or anybody:

Is there an index or public number out there somewhere re shipping container rates?  That is a number I would like to track, and would also help all of us with another indicator of the world's financial health (distress).

Thu, 12/23/2010 - 12:49 | 826243 Oh regional Indian
Oh regional Indian's picture

Hey DCRB, it's a spot market. Just google a phrase like

global shipping container rates

and you have choice, which of course, will induce cognitive dissonance.... and so on. And on.



Thu, 12/23/2010 - 09:50 | 825876 papaswamp
papaswamp's picture

Rising fuel prices and falling BDI? sort of a double down.

Thu, 12/23/2010 - 09:51 | 825883 snowball777
snowball777's picture

One of these two is not representative of the true prospects for the global economy.


Thu, 12/23/2010 - 10:13 | 825925 hedgeless_horseman
hedgeless_horseman's picture

BDIY to zero is merely an unintended consequence of Amazon's "free shipping" offer.  The shippers will get to make it up on volume.

On a long enough timeline
the shipping rate for
everything drops to zero.

Thu, 12/23/2010 - 11:26 | 826068 snowball777
snowball777's picture

That's why I got Amazon Prime...got tired of listening to the wailing chillun when my wheat shipment was artificially delayed two days to inspire me.


Thu, 12/23/2010 - 09:56 | 825887 Id fight Gandhi
Id fight Gandhi's picture

Bdi peaked prior to the spring crash. Every sell side anal-ist that tries to work it into their projections have been wetting themselves since the summer when it surged.

I've seen no media mention of it falling again, but I'm sure if they did it would a "seasonal thing."

Thu, 12/23/2010 - 10:00 | 825888 virgilcaine
virgilcaine's picture

Credit is contracting, Silver is starting to confirm this also.  

Amazing with all the $$ that was pumped into the system and it's not going anywhere.

no demand for goods either.  sad really.


Thu, 12/23/2010 - 10:02 | 825904 qussl3
qussl3's picture

Anyone have any idea how the supposed explosion in supply of bulk carriers has affected the BDI?

Thu, 12/23/2010 - 10:05 | 825911 yabs
yabs's picture

I catually prefer the chart for drys

take a look at that versus the stock market


Thu, 12/23/2010 - 10:18 | 825934 hedgeless_horseman
hedgeless_horseman's picture

Last dividend reported: N.A.  Discontinued

Aweesome market commentary. She sure ain't no growth stock.

Thu, 12/23/2010 - 10:07 | 825918 plocequ1
plocequ1's picture

Baltic Dry index, Does Hal the magnificent HFT pump machine know about this index? I didnt think so. Rally on. Personally, I thought Baltic dry was a type of wine or Champagne.

Thu, 12/23/2010 - 10:20 | 825944 snowball777
snowball777's picture

More like a Latvian Sapporo knock-off.

Thu, 12/23/2010 - 10:19 | 825938 snowball777
snowball777's picture

Raw inputs, bitchez!

A lil Steely Dan for our seafaring shipper friends...


Thu, 12/23/2010 - 10:25 | 825960 lincolnsteffens
lincolnsteffens's picture

Anyone have ideas why GLNG has been bucking the shipping trend? Or, are they

about to tank?

Thu, 12/23/2010 - 10:34 | 825974 Azannoth
Azannoth's picture

Never try to catch a falling knife, what a bad time to get into shippers

Thu, 12/23/2010 - 10:41 | 825986 virgilcaine
virgilcaine's picture

watch the pm's ..esp Ag. the best of all lei.

Thu, 12/23/2010 - 10:59 | 826021 OMG
OMG's picture

PM's down DOW up! It's all good:)



Thu, 12/23/2010 - 11:37 | 826087 firstdivision
firstdivision's picture

It is nice to see that the Baltic does move due to fundamentals still and that it has been a good guage at the reality of the world.  So if the historical correlations do hold, we should be seeing the fireworks in Q1. 

Thu, 12/23/2010 - 16:13 | 826801 hardcleareye
hardcleareye's picture

Thanks for the link.

Thu, 12/23/2010 - 17:44 | 827018 RockyRacoon
RockyRacoon's picture
"Every 1 cent increase in gasoline decreases U.S. consumer disposable income by about $600 million per year. The move in oil in the past week alone has almost entirely wiped out the most recent stimulus."

So, this is transfer payments for the oil companies?

What's next on the government agenda?

Thu, 12/23/2010 - 11:47 | 826112 Sophist Economicus
Sophist Economicus's picture

This report is bogus.   Everybody knows we are in the middle of a new boom.    If you don't believe me, just as Harry or any of the other 'all in' guys that mistake gambling with value investing

Thu, 12/23/2010 - 12:24 | 826184 obamacious
obamacious's picture

There is only one direction, and that is up. I asked my friend Ben to help me.


Dryships: My wife tells me that the shelfs a pretty empty in the stores and she thought that stores have less inventory than in previous Christmas times. In fact, a friend of mine told me that she didn't order as much goods this year than in previous years as she didn't want to sit on inventory like last Christmas.


Makes all sense.

Thu, 12/23/2010 - 13:05 | 826275 Printfaster
Printfaster's picture

Big deal. 

Baltic Dry goes dry every December.  Couldn't be because of Santa Claus commandeering all the shipping?


Thu, 12/23/2010 - 16:04 | 826780 hardcleareye
hardcleareye's picture

Bloomberg 5 yr chart doesn't appear to support your statement..


Thu, 12/23/2010 - 13:32 | 826364 Ned Zeppelin
Ned Zeppelin's picture

This is just the way the BDI looks before you add in the shipping on Christmas eve by a certain S. Claus, which is treated for international regulatory and tax purposes as if it is performed by seagoing vessels, rather than by air (Santa's activities actually transpire via a "multiverse quantum displacement transporter", and no one knew how to categorize it, so "by sea" got the nod years ago). 

The BDI will look really good next week.

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