china goes on spending spree, page-9

Supply and demand ….

Has the world got enough iron ore mine to meet that demand ?

Currently it does look like it, Even with China revamping it project and spending mega billions on projects.

This credit crunch has effect the supply of all ore.

What does the credit crunch have to with ore beside funding(which has been talk about before).

Well buying a new car and buying a new house was built on credit.

Back in the old days, the bank would have never loaned any money purchase a new car and you would have to jump through hoops to get a bank loan for a house.

Now everything is bought on credit.

What has this got to do with SDL ? -- If the credit wheel has dried up and the cog has fallen off the wheel, then new building and cars are not being purchase on credit. An example of this is How GE is trying to pull out of the housing loan and pulled out of the car loan early this year.

This credit crisis has to do with the repacking of the CDO in home loans and the wheels falling off and compounding on other debt related service.

Iron will be in less demand and current projected out put of iron meets the demand.

Does china want competition – the question is yes, but how low can you buy iron ore for before the mine start to get hurt ? After all SDL is in it for the profit.

DYOR – my option so please don’t flame me.

Have a good day .. other nice day in melbourne after a very chilling night, my poor dogs had to buy them a electric blanket.