Banks / Derivatives etc.
OK ..
so what exactly do derivatives / real estate / subprime / ABCP / LIBOR / CP guarantees etc. .... have to do with Molybdenum ?
Moybdenum = Hard Asset .. demand driven by steel applications / corrosion resistance / temperature resistance & melting point requirements/improvements / additive characteristics / Chinese naval development requirements etc.
Pricing power is lost when there is so much volatility in markets ... German business managers of the 1920's could attest to the inability to plan / account for & manage projects when pricing power is strained by inflation / price volatility etc. .. BUT .. inflation / deflation .. MoO market is more influenced by demand growth & supply constraints.
Molybdenum market analysis (tough even for it's most insightful analysts) .. is very constructive because of demand drivers / supply.
VGM stock is priced by inefficient market participants who don't know the company assets / treasury and management position / funding & development prospects etc. & many of whom are undoubtedly strained by ambient negative equity market conditions etc. ....
Like inefficient pricing generally, it will only last for so long.
This business of banks blowing up their balance sheets is tough ... it's followed by relatively rapid wealth transfers, volatility in many sectors and a new set of white shirts (perhaps in different countries) owning what the last set of white shirts just lost from their previously over-puffed asset balances etc. etc. ... but will have little to do with Moly demand / supply balances.
Pipelines / railroads / bridge steels & oil drilling & burgeoning naval applications are not substitutes of US house prices / or Commercial Paper bubbles etc. ... Molybdenum demand is correlated more closely with urbanization trends and industrialization requirements.
Puff the Magic Dragon ... is a bank problem .. and won't take long to set right.