Shuttering Steel Production in the UK
Excerpt...
Since the global commodities downturn began, there is one product we haven’t discussed much: steel. Energy and non-ferrous metals have hogged the spotlight. But steel has struggled, too, and with it producers in the US, UK and Europe. Wednesday, news broke that the UK’s largest steel producer, Tata Steel, wrote down the value of all its British assets to “almost zero” and intends to pull out of the market as soon as it finds a buyer. About 15,000 of the UK’s roughly 40,000 steelworkers hang in the balance. Britain’s largest steel plant, in Port Talbot, Wales, could close within weeks. Politicians from both major parties are calling for bailouts and tariffs, fearing the demise of national steel production will threaten all of UK manufacturing. The situation in America is less dire, but Washington still slapped a 266% tariff on steel imports from China earlier this month. For global stocks, this is all mostly noise. Cold as this sounds, markets generally look past isolated, industry-specific problems and job losses. But steel is a hot political issue, and the popular narrative omits some key facts. I reckon the world would benefit from a little sunlight.
Since the global commodities downturn began, there is one product we haven’t discussed much: steel. Energy and non-ferrous metals have hogged the spotlight. But steel has struggled, too, and with it producers in the US, UK and Europe. Wednesday, news broke that the UK’s largest steel producer, Tata Steel, wrote down the value of all its British assets to “almost zero” and intends to pull out of the market as soon as it finds a buyer. About 15,000 of the UK’s roughly 40,000 steelworkers hang in the balance. Britain’s largest steel plant, in Port Talbot, Wales, could close within weeks. Politicians from both major parties are calling for bailouts and tariffs, fearing the demise of national steel production will threaten all of UK manufacturing. The situation in America is less dire, but Washington still slapped a 266% tariff on steel imports from China earlier this month. For global stocks, this is all mostly noise. Cold as this sounds, markets generally look past isolated, industry-specific problems and job losses. But steel is a hot political issue, and the popular narrative omits some key facts. I reckon the world would benefit from a little sunlight.
At least the government is protecting you from the faulty and dangerous vehicles and structures this industry produces.
Our next target is to reduce medication to herbs you can grow organically in your garden in your own s**t. Then you'll know the meaning of power.
Signed,
Wesley Mouch
Even better, how about no one can quit or sell/shut down their companies? Where have I heard that before?
It will be interesting to see how it plays out.
All the smoke-belching steel plants to be seen in Bessemer were totally awesome.
There was next to nothing to be seen for steel plant smoke when I moved to Bessemer in 1982 as a state corrections officer of 6 months due to transferring from a prison by the Florida state line.
Guess who most the corrections officers in Bessemer were?
Laid off steel workers!
Bet Obama would be real happy about that if he ere president back then.
You coulda put an allosaur in your tank.
My tail woulda been a real drag, though.
http://www.amazon.com/Vintage-Exxon-T...
... A sequel for the British series?
:)
For a while, the government was considering nationalization. Sound familiar?
The 'excerpt' was from the first paragraph at http://www.marketminder.com/a/fisher-... ...
MarketMinder.com is a weekly wrap-up of news articles from the MainScream Media that portend all kinds of calamitous results in the eyes of the writers. (not necessarily from their brains, but definitely in their eyes!)
I share them to offer a perspective to folks who are Believers of Keynes and current market analysts who try to predict results of economic events today.
The three or four paragraphs FOLLOWING the 'excerpt' pretty well lead in to the thread that what the authors of the headlines might make a Big Deal of... are flyspeck drivers of the Real Markets. Underscoring my perennial comment that Critical Thinking is DEAD. The examples are everywhere, and that one caught My eye...
If you respond emotionally to headlines about imminent disasters coming down the pike written by authors like the ones cited, you're going to fall into the same trap that Obama, Hillary, Bernie and many others have... drawing the wrong conclusions and planning the Wrong Cures or Preventive Measures to belay or delay those impending 'disasters.'
As I often put it, "Today's economists have forecast about 24 of the last three Recessions."
Obama, just like Krugman and others, are the Chicken Littles of today's economic world. Bernie and Hillary might be the Cassandra's. I'm not sure. But I will bet that their Solutions, if implemented, will prove worse than any risks.
JG offered the best Real Solution to such problems... "Get Out Of My Way."
But the Obama's, Hillary's and Bernie's (and Krugman's) of the world Can't Do That.
Follow the Desire To Control Others.
Critical Thinking Is DEAD.
Hope that helps. Sorry if it wasn't succinct enough for you.
Cheers!
Oh yes, if the coal mines in this country go away the steel mills will have to buy Coke from China, which some are doing already.