“The financial crisis has been addressed, the commodity crisis has not,” warned Goldman Sachs yesterday, predicting that raw materials prices would remain high and volatile.
The investment bank said each subsequent price spike would be followed by one higher than the last.
“The reality is that the commodity problem is one of supply shortage due to years of under-investment,” said Goldman. “This chronic problem has been exacerbated during the financial crisis by tight credit conditions and large price declines, which impacted producers.”
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