Is this the End of Commodities – The major point about this great trend, the stock market crash of 2020, has been, in a word, crisis. Some of the key things that happened have now been pointed out here for everyone to see and to think about.
Is this the End of Commodities – Here’s What You Need to Know
The Government’s failure to protect the financial stability of America’s corporations left many companies in need of funds to continue their operations. During the recession, most banks and lending institutions were not willing to lend these companies additional money, as they did not believe that the current economy would ever recover.
It was during the recession that most companies had to cut back on spending and reduce their workforce, even while bigger and better was being produced elsewhere. With more than one-third of the manufacturing industry has gone, many smaller companies could not compete with their bigger and richer competitors. They were literally being run out of business.
Although there were other ways of handling the problem, the United States government at first had a difficult time finding other ways to bring about big savings for the American consumer. Most people lost their jobs during the recession, and it was only during those first few months that President Bush’s stimulus package could help the banks.
Overall, many of the laws and regulations that were put into place to protect the American consumer have been suspended or removed. There are currently no laws that require the disclosure of the true cost of the metals in which a company is selling, so consumers are taking the risk that they will be purchasing inferior products at a lower price.
Another great disadvantage is that the new regulations do not allow for another huge boom in the supply of metals, which might stabilize the price. The United States government seems to want to control every aspect of a person’s life, and one way of doing that is by restricting the amount of metals you can purchase.
The price of metals has been falling because of the decrease in demand for them, as many people are worried about whether or not large corporations will cause a major shortage. Big businesses are simply cutting back on the number of metals they purchase, so it is no wonder that the price of these materials is dropping.
What many people don’t realize is that these days, a business must have a certain amount of capital available to continue operating, even with millions of dollars in the bank. That means they cannot rely on the value of commodities to stay high forever.
Many entrepreneurs try to ride the coattails of valuable resources, and they actually get their supplies by creating a fake shortage. These unscrupulous businessmen actually make money off the backs of people who are forced to buy goods at lower prices.
One major problem that came with this recession and one of the most disturbing is the threat of global warming. A major side effect of the crisis is that the amount of atmospheric carbon dioxide is increasing, and this affects our climate in a negative way.
The less carbon dioxide in the atmosphere, the less negative impact we have on our planet’s ecosystem. Global warming is becoming a growing concern for many scientists, but what is more alarming is that the politicians will not do anything about it.
Now, it is obvious that the disadvantage is simply the fact that all the products that are produced in one country will be shipped to another country to be sold, but the big disadvantage is the fact that our atmosphere is already going through some serious changes. There is a limit to how much we can do to reverse this crisis, and that is why people are finally beginning to admit that global warming is a real threat.