Oct 21, 2008

The Indonesian Seaweed Bubble

It appears that no commodity was immune from the rapid increase in prices this year - not even seaweed, which went through its own bubble in Indonesia. After more than tripling, the price has come back down to earth, leading to calls for government intervention and fingers pointed toward speculators. Sound familiar?

You can read the whole story at this Wall Street Journal Link. The seaweed is used to make carrageenan, a common food additive that acts as a thickening agent or provides texture. You'd be surprised how many products at the supermarket contain this ingredient.

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