The majority, driven by the forces of the invisible hand rather than the Fed, will violently push trend (markets) and dated economic theories to the brink. While collapsing steel demand suggests that the economic downturn in emerging market is more than short-term hiccup, the majority will likely ignore it. Even those that sense something more generally believe monetary and/or fiscal policy can reverse any unpleasant trend. News flash! If that was the case, financial history books would be filled with descriptions of an endless plateau of prosperity rather than traumatic economic, financial, and social panics.
Headline: Steel demand ‘evaporating at unprecedented speed’
The steel industry's dire straits are in the spotlight this week, with both China and the U.K. warning about the hit from the dramatic slump in demand, particularly from the world's second-biggest economy.
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