2007 is only two trading sessions old -- yet it's been absolutely horrific for commodities.

The 2007 sell-off -- ranging from copper to crude oil -- could signal that disastrous effects are just around the corner.

For example, copper futures fell 7.7% yesterday and are off another 2% today. That puts copper prices off 27% from their December highs.

Same with crude oil. Prices are down 4% today after falling 4% yesterday -- putting the front-month futures contract at its lowest level since June 2005.

And it's not only oil and copper that's getting bludgeoned -- everything from base metals to livestock has been selling off over the past two trading sessions.

Nothing is being spared.

So why is this -- economically speaking -- a bad thing?

Because quite frankly, raw commodities like copper and oil are used in the production of many, many industrial goods. When the demand for raw materials diminishes, it serves as a forward indicator that a slowdown is underway.

So -- the reduced demand for copper, oil, and other raw materials will be reflected in the economic statistics that come out a month from now -- but the “true” market effects are being felt now.

Dow puts, anyone?

Oh wait, we already have them.

Phew.