YESTERDAY, I opined that declining oil prices, by reducing shipping costs, might provide a boost to international trade sufficient to provide some needed support to the ailing global economy. It certainly might, but only if credit markets don't handcuff shippers. Via Yves Smith, we learn of failing trade transactions: The credit crisis is spilling over into the grain industry as international buyers find themselves unable to come up with payment, forcing sellers to shoulder often substantial losses. Before cargoes can be loaded at port, buyers typically must produce proof they are good for the money. But more deals are falling through as sellers decide they don't trust the financial institution named in the buyer's letter of credit, analysts said. "There's all kinds of stuff stacked up on docks right now that can't be shipped...
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