Hi there!
I am neither economist nor financial expert, pure geologist! Following is my idea and could be wrong!
Looking at the market and major Australian industries all I see is huge amount of debt and high numbers of mining companies (in particular in Commodity and energy) which are at the edge with huge credit outstanding!!
My question is would the act of few mining companies will eventually end up to something like 2008 housing bubble in the US and collapse of the economy in Australia? All I see is shareholders, and companies on debts (oil, Iron Ore, and…)so if these markets keeps falling ?what is going to happen for lenders(banks I suppose)?and that is just the market itself not considering people who are out of job ,little mining town economy,exploration guys and producers, which already are broke and in debt? what happen when this people could not give the debts back?Maybe an economist could answer that question?
