While we have excepted low commodity prices, I fear low commodity prices could send 2016 in to a tail spin of GFC proportions.
One only has to lookat glencore and the 30% overnight drop to see the damage, that could occur. One only has to look forwards BHP, Rio And Santos who have huge borrowings. While we may think it may only depreciate commodity suppliers, it the banks and overseas lenders who have lent the funds could be forced in to recovery mode. And to take huge losses rather extend losses, I say this as Queensland nickel looks at going on care and maintience.
With all commodity from oil and gas to nickel to copper and across the board in many cases being mined at or near cost or in nickel's case most likely nearly all under water. How long before debt convents are called on. I say this not in wanting to call for Armageddon or wanting to see companies fall over. But a more a be aware of situations that may come. Personally sine most metal ps and price are not reflective of a buyer seller relationship but more a commodity market gamble fest controlled by big institutions running a casino pricing market.
Unless commodity markets grow some backbone from oil to copper and most other metals I fear big closures in mine across the world and more boom bust in the commodity cycle dragging down banks and others as funds tighten along the way.
I hate being negative but it surprises me that a lot more including commentators are not all over this.
