potential, page-21

BHP was around $50 in late 2007 and fell to $20 in 2008.

Does Jim Chanos see something others do not see in regards to the China bubble? If China cacks its dacks BHP and RIO share price will come a lot closer to their GFC2 lows.

Why would China cack its dacks? Too much internal debt, over-building, and distruption in its exports as its trade partners reduce consumption and imports.

BHP was lucky it did not get to takeover the Canadian potash company for $40 billion. It is far safer to grow organically instead of doing stupid takeovers at the top of the market.

Most sensible mob were the owners of Glencore who sold off a part of the company via an IPO near the current top of the commodities cycle.

Yes, a recovery will happen later on- but it will be some way off.

In the meantime watch out for much lower bulk commodity prices as demand falls off and supply increases.

This will be a process rather than an event.

Here is one discussion on the Chinese bubble, but no doubt there are many other views

http://www.financialsense.com/financial-sense-newshour/big-picture/2011/08/06/01/bert-dohmen/the-next-perfect-financial-storm

At present it is safer to just trade the shares.

loki