Will Glencore start the collapse?

Many of you may have seen the news today that Glencore shares dropped by 30%, an approximate drop of $4b.

www.zerohedge.com...
www.onenewspage.com...

The stories above are a few days/weeks old but i haven't seen it posted here.

I've had a look at a few of these stories across different websites and it seems they are in serious trouble.

Commodities prices across the world are falling due to an economic slowdown, though it seems the other mining corporations don't have anywhere near the exposure Glencore has.

Sorry for the short thread. Just making you guys/gals aware.

Another link: www.theguardian.com...

a reply to: EA006

Dow Jones is down almost 300 points today www.google.com...

S & P is down about 50 points today www.google.com...

Glencore might be "sacrificed" but only time will tell if it will cause another stock market crisis. Until then, buckle up and stay tuned I guess?

a reply to: FamCore

Thanks for replying. Deutsche bank is in big trouble as well.

I won't link it because of the source.

It's on record here now for future reference.

a reply to: EA006

I always have a good chuckle reading the comments from the Zero hedge articles.
Glencore has continued its drop since that article it was down 20+% here today in the UK on the LSE.
www.google.com...
if you are a gambler is it now a buy ? Or will it continue to tumble ?
www.lse.co.uk...

a reply to: skywatcher44

The article says there are options available to Glencore, but it looks pretty grim.
If they loose the Investment grade status, they're going into free-fall if the other options fail.

a reply to: EA006

I wouldn't want to be an exec. with Glencore right now if my retirement savings were in the form of company securities. Yikes! I will be following this thread and financial news to see what happens with this.

a reply to: FamCore

Squeaky bum time for the company. Hopefully they recover but it's looking very very bad.

Greater problems exist than the welfare of investment companies. M2 is rising as fast as the velocity of M2 is falling (2014 article) which is the last direction you want the economy to take.



Its interesting that Germany too, funded their wars with debt in the 1920's which resulted in hyperinflation. If I didn't know any better I'd be thinking that the US is aiming for hyperinflation to force the public to accept a new world currency owned by international banksters. They don't want fix the economy, they doing everything in their power to collapse it.

a reply to: glend

Up to $18.4t now; www.usdebtclock.org...

a reply to: EA006

Not to mention unfunded liabilities which some estimate is now over 200T. But if you examine GDP to Debt ratio by country, Japan should be the next to implode.

a reply to: glend

Seems there are a few possibilities. Maybe to keep people second guessing?

I think that this is definitely something to watch. The financial system should be able to handle a company the size of Glencore failing, but derivatives are still largely unregulated, and who knows if the counter-parties can deliver if they are set off.

We'll see what happens, but I'm watching this one closely,particularly the CDS on glencore's outstanding debt, and who the counter-parties are.

It may not be a Lehman moment, but the writing was on the wall long before they actually bankrupted.

a reply to: jefwane

Here's a story from 1 day a go.

www.ft.com...

They're fighting their corner.

originally posted by: EA006
a reply to: FamCore

Thanks for replying. Deutsche bank is in big trouble as well.

I won't link it because of the source.

It's on record here now for future reference.

Deutsche bank is in massive trouble as is commerzbank. Heading into a weekend, Deutsche will be lucky to make it to Monday.