dow jones last hour, page-10

"...saturdays papers are doom and gloom makes you ponder how those punters who put there mills into super before 30 june must be feeling...houses dont tank this quick..."

How many times in the past few years have the doom and gloomers come out of the woodwork after any decent drops or corrections....and how many times have all world markets then consequently rallied even harder afterwards.

Newspapers are out to sell newspapers, not necessarily present facts, and if they can embellish in a little sensationalism to bolster sales, well, they do so....It also must be remembered that all too often larger interests who control information try to whip up a panic, encourage the masses to stampede towards the exits, and then pick from all the carcasses left strewn around the place....always has been that way, and will always be....and it always works a treat....rich getting richer, and the STUPID/WEAK who sell get poorer.

Like Macrae, I have long since held the same view as to the economic setting that might present itself after Beiing....unquestionably there are many other who will feel the same, and that in itself will more than likely precipitate the event at the first sign of any weakness....to add to that, the world's focus will be off China, and so the Chinese Govt's economic policies may tighten, in order to ensure a more sustainable pace of economic growth, encouraging less inflationary pressures and alike.

However, I am more and more beginning to doubt whether the Chinese story is only about Beiing.....no, I don't believe it is anymore...it is more about Chindia and many other third world economies who need resources to develop....and as such, Australia, as chiefly a primary producer, will be somewhat shielded in the event of a global meltdown, to some degree anyway.

China still enjoys a massive trading surplus which is still growing....so I can't see it imploding just yet....that is, of course, if the US doesn't implode completely....no matter how much people may say that the US is losing it's economic importance, the global economy is still very much intricately tied to it's prosperity.....they are by far the World's largest consumers....and the China story owes a great deal, and is very much dependant, on first world economies such as the US continuing to consume....the problem there is, it is unsustainable consumption, basically on credit.....no surprise then of the current events that are unfolding.

So, in summation, I believe that the US will be forced to reign in it's spending, and that the Chinese will look to slow down it's economy, but all for the greater good.
Will there be an easing in the tearaway economies of the world??? Yes, absolutely, there has to be. Will it spell the end?? No, I don't believe so.

The best way to protect one's self in the future will be to look for the companies that earn money, and do so with a healthy margin....low cost producers, so to speak....some gold or property wouldn't hurt either - the old money always runs to that first, and there's plenty of that around. Many of today's specs will obviously no longer exist.

All in all, whilst we are not an isolated community, Australia is the "Lucky Country", and I think our future prosperity remains bright.

All in my opinion of course.