Henry Thornton, with help from his commodity guru, reports:

On Tuesday night, Alan Greenspan marvelled at the flexibility of the US
economy which has seen it “… absorb and recover from the shocks of
stock market crashes, credit crunches, terrorism, and hurricanes – blows
that would have almost certainly precipitated deep recessions in
decades past.”

Flexibility also applies to the current Australian resources boom which
is set to continue even as the direction of trade shifts. A recovering
Japan and the flexible China will pick up the slack of a slowing US
economy. Henry’s full report is here.

Meanwhile, Nick Raffan reports on the current make-up of the resource boom:

“Fear and loathing are dominating markets and leading resource stocks
are copping a canning. Shanghai property prices are falling and lower
Chinese car production is adding grist to the mill. It is not all bad
news and steel prices are backing up. It does not look like there will
be a collapse in world trade, in fact the opposite seems likely and
that’s supportive of demands for raw materials.”

Read the full Raff Report on commodities here.

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Peter Fray
Peter Fray
Editor-in-chief of Crikey
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