BHP is a special case. I think there was some arbitrage out of...

BHP is a special case. I think there was some arbitrage out of BHP and into RIO going on - though possibly the reverse now. The BHP action seems to be in London these days as takeover finance is being raised there the news and rumours are emanating from there. Interesting that it held up so well in New York on friday.

I'm not 100% bullish short term but think the medium to long term is still bright - particularly for the ASX. The financial crisis is systemic and can be just as easily unwound (or rewound if you like). If lower interest rates did get passed on to struggling mortgagees who then were able to pay their loans, CDOs would rise in value, banks would start showing profits on these, balance sheets would be healthier, lending would increase, a virtuous circle would replace the vicious. Huge government and institutional efforts will be directed towards these goals - and not just from the US. Its in the timing - as always. Probably when the instos decide that they have shaken out as many mums and dads as they are able to.