Well the price of coal has tanked and there is no doubt about that.
Talk about some of these organisations, sometimes I think they are just a super fund for the boards. Really when I went back to Uni about 13 years ago to do a degree in Software Design and development the business people were not the sharpest tool in the shed imo.
I thought then I know why some of these organisations completely miss foreseeing reality, there is no ethics taught at all. The only time ethics are taught is how to comply in the accounting part of the degree and talk about how people have got around those laws.
Credit Suisse
Read an article in the Australian this morning, don't often read that paper as I don't like their ethics, but anyway this one caught my eye. Credit Suisse apparently has predicted that unit building in Australia is a good bet right now and has invested in a property company in N.S.W.. I have to say have these people looked at the latest figures from BOS in Australia. Having owned units before I have to say the first place the pullback in housing is felt is in the unit markets, but that is just my retail experience mind.
With new dwellings approvals down and banks now tipped to increase their developers loans by another 0.5% before the end of the year this is going to smack housing hard.
RIO
I read another article this morning said RIO is pulling out of the Hunter region coal mines and shutting them down.
That will be a big blow to the Hunter. Personally I see it as being much better for the environment but that is just a personal thing.
Australian revenue is falling and probably wont really make itself fully felt for 6 months yet.
