Howdy Crazy, I live in Asia and have been in this part of the...

Howdy Crazy,

I live in Asia and have been in this part of the world over ten years. I have spent time in China, Vietnam, Cambodia, Laos, Myanmar{Burma} and Thailand. I'm now based in Bangkok.

I see the Asian economies still powering along ATM, however IMO it is completely debt fueled!

They have a situation which I would regard as full employment across Asia! Anybody, regardless of education or back ground can obtain a good paying job!

They also are in the mist of a gigantic debt fueled building boom which is predominantly paid for a by individuals with small investment properties! Condo and apartments are sold off the plans and end up becoming empty apartments and condos!

There are endless thousands of empty apartments and condos across across Asia and they are currently building what appears to be endless thousands more!

The Governments have the ability to borrow large amounts of cash to stimulate their economies which will allow things to continue at the same pace for at least a few more years after which the house of cards will fall!

And fall it will! IMO the coming collapse of China and Asia will be just as spectacular as it's rise! However I still regard FMG as a good short term bet as the Iron Ore price is unlikely to get much weaker over the next twelve months!

That doesn't mean I will stop shorting the stock on days where it is not looking so good. Before Friday FMG had risen 26% from the June lows, which means it could possibly have a pull back before it's next advance!
The point I am making is all things considered it would be foolish to bet against companies like FMG in the medium term because of china's pending doom. It will clearly take years before these governments run out of cards to play!

Betting against FMG because the Iron Ore price drops another $5 is a different story! Good Luck!