fmg shareprice after a bail out or rescue , page-21

Dear dull, your query regaridng the effects after the bailout are seeming to fall into two camps - world recession/depression or a small slow down and back to normal. the recession aspect is that less demand from the US will in turn reduce exports from china in turn less demand for resources.

The only flaw I see in this is the BRIC effect, in that US aint the only country of significance. China in particular has not only a massive population, but a massive poor population that is seeing the wealth in the cities and wants to be a part of. This is the reason why the chinese are building cities the size of brisbane/sydney/melbourne everywhere as quickly as they can. this is not going to stop. The chinese government control everything and can therefore direct resources to where they want. To aviod roits etc they need to continue to provide employment. A recession in the US will actually allow more resorces to be directed to internal requirements, and thereby taking pressure off inflation in china

If you look at some of their products that are cheaper, and better quality, than than they cost 10 years. Accordingly, they will continue to produce. even with a downturn in the US etc, china will still produce. Even in a recession people trying to spend less will look for bargins which usually come from China.

This 'downturn' i see is an opportunity for the chinese to pick up bargins in the resource sector through supply contracts or whole companies at good prices, and they have the cash to do so.