Get out now, page-20

i heard a very interesting theory which could point the way to go for all of us,without trying to prove matters by financial arguments.let"s just say that the chinese govt.still wants ore,but doesn't want to pay the outlandish sp of yesteryear.it"s so obvious,they have major players including vale,fmg,rio and bhp trying to ramp up as much as possible to still make a profit on ever slimmer margins and nobody really knows if they are subsidizing their own mines to stay open anyway.
china"s actual demand for IO is in decline also,which basically means that even if the sp bottoms at $75/T,it"s going to be stable around that mark.the only upside is that the aus$ has a long way to fall and stay down for a long time to come.if as anticipated, interest rates go up in the US,then that throws another variable into the fmg debt scenario.
anyway you look at it,the problem with fmg is that it"s a "confidence"share.no reassurance from "balance sheet projections",will ever make it a big gain on sp again.
cheers crazypunter