As many of you know I follow the Baltic Dry Index and this has been a pretty good predictor of how the economy is faring.

This measure is simply the cost of moving dry goods  (not oil) on a ship across the oceans of the world.  If the price is rising, then commodity prices are rising and

the economy is improving.  If the ships are empty  (rates falling badly as no cargo) then the economy is in real trouble.

Today the Baltic dry index has fallen from 4209 on May 29.2010 to 2515 today for a loss of 40% in less than a month.  This is a major red flag that the economy is imploding

badly.  Stay tuned on this one!!

John