Weakness in steel sector is a signature of global depression in 2007-2010
Sam Adelton
Dec. 12, 2006

The metals are telling the scary picture and gloom and doom of the economies around the world. Steel is most sensitive to economic boom. The booms is finally ending that was fueled by unprecedented borrowing in America, Europe, China and India.

The world especially Asia will fall into massive depression in 2007-2010. It may extend to 2025 like that in Japan. Most likely the Asian depression will sharp and a correction for the long term. The decline in America and Europe will be gradual and more of much longer cycle.

Steelmakers tumbled after Nucor, the nation's second-largest steel producer, said lower prices, higher inventories and record imports will lead to a smaller-than-expected profit this quarter.

Steelmakers all over the world are showing sign of frenzy bubble and M&A activities while declining fundamentals. These are signs that were seen in America in 1928-29.

The global depression will stage from Asia, which will suffer from decline in exports to America and Europe. Indian stock market has already crashed. The lack of incoming Direct Foreign Investments will cause massive upheaval in Indian and Chinese economies. India and China has massive underemployment and corruption. They were funding these with foreign exchange earned from outsourcing and foreign investors.

Now it will get reversed. Both India and China will have difficulty by 2010 in paying foreign investors trying to leave the countries for safer heaven in America and Western Europe.

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