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Financial crisis could improve things?

November 15, 2008

The New York times publishes today an article on how the slowdown is severely affecting Tech companies:

“Technology giants like Intel, which makes chips for personal computers and servers, and Cisco Systems, which makes network equipment, warned that revenue was plummeting at rates last seen in 2001″.

It is logical to affirm that coltan and cassiterite prices will start going down. The crisis logically also affects video games. According to this scenario, the current financial crisis could be positive in the medium-long term  (acute decrease of mineral demand), though negative in the short term (cuts in humanitarian aid).

According to data available at the London Metal Exchange webpage, the price of tin has decreased 37.84%:

tin-price-decrease

its value since july.

This conflict is fueled by greed. In a situation of this kind in a developed country, with prices plummeting , businessemen would think about switching to a more profitable sector. The problem is: there is no other sector as profitable as this in Congo.

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