bhp settles iron ore price with baosteel , page-50

Hi trader_10

In an effort to help us to avoid being driven by irrational fear just a few thoughts on catalysts driving the XAO down. IMHO the antidote to some of these may also lead to changing market conditions.

IMHO major developments since July last year seemingly linked to the subsequent 27% decline in the XAO:
. sub-prime credit crunch - still reverberating but mostly exposed methinks [IMHO an effective strategy for minimising competition in fin. markets for a very long time].
. the 2008 oil rocket - probably the best way to tackle greenhouse [I can live with that as long as effective alternatives such as solar, wind & vegetarian diets are supported - disclosure I am a vegie!].
. reported threats by Israel's DPM re Iran [still a smoking gun?].
. the introduction by the ASX of cfds in November [banned in the US & now more strictly regulated in the UK where they started].
. use of covered shorts on the ASX, as exposed by The Australian early in 2008.
. the RBAs determination to 'cool' the economy & slay the inflation dragon [IMHO ineffective & economically disastrous - huge threat to remaining Aust. manufacturers].
. the new govt's determination to slay the inflation dragon & to introduce an emissions trading scheme [IMHO well-meaning but ineffective & yet to be thought through => confidence sapping uncertainty].

IMHO the apparent irrationality of our market will not detract from BHP's accumulated wealth, performance & earnings unless govts. & global fin. institutions collectively smash the global economy - I freely admit to thinking that markets judged that they made a good start though.

4YIO - NFA