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‘Subpriming’ of commodities poses growing risk for resource investors Add to ...

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It is not an exaggeration to compare the complex derivative strategies surrounding resource inventories to the U.S. subprime mortgage crisis. We’re not kidding. Mining companies are using inventories in the same way investment banks used mortgages, the complexity level is exceedingly high and, like the banking crisis, the scale of speculation is hidden from normal accounting procedures.

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