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Leading Economic Indicator When It Works

There is no such thing as too much of a good thing or is there? The Wall Street Journal, in its Heard on the Street column on February 4th, learned that there was when they knocked the BDI, one of its long-standing leading economic indicators, off its pedestal. Initially, they blamed the weather, but then Jonathan Chappell of J.P. Morgan Chase explained the impact of overcapacity, the forgotten input, on the dynamics of supply and demand.

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Written by: | Categories: Freshly Minted, Market Commentary | February 17th, 2011 |

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