Alcoa: Insane Attack on Excess Supply at Work ~ The Risk Averse Alert

Monday, January 10, 2011

Alcoa: Insane Attack on Excess Supply at Work


Declining shipments and higher input costs: welcome Alcoa (and the rest of the world) to the vice grip of a bearded fraud who cannot flood the globe fast enough with liquidity directed toward a mountain of hopelessly insolvent securities masquerading as legitimate financial claims.

Ah yes, Alcoa's debt was paid down, too. Yet would conditions today allow this manufacturer (and the rest of the world) an approach toward becoming debt free? This hardly seems likely, as shrinking aluminum shipments reveal a physical economic breakdown in keeping with the bearded fraud's attack on excess capacity. So, today's "stability" still buys time only ... time sure to expire, too, as excess capacity relentlessly broadens via a negative feedback loop stoked with wads of ill-disposed liquidity piled atop the mountain of mispriced risk supported by a hopelessly dysfunctional securitization regime.




Apparently no need for concern among the consensus of advisors. Most fitting, indeed.


Fast Money
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