Iron ore price, page-76

must admit gasin,what you say sounds true,but what should the rba do.the housing "bubble"is caused by investors cashing in on low rate interest only loans,negative gearing the property,then hanging on for more than 12 months,so when you cash in you get the 50% CG discount.add to that the SMSF angle,and it is almost a perfect storm scenario.
lowering interest rates won't solve a thing,and having a cash rate of 2.5% holds a few aces up our sleeve compared to the rest of the world.
the IO producers would be slightly better off with a low $,but at the end of the day ,it's just the never ending upward trend of supply at ever reducing realized profit margins,that are taking their toll on "expensive'producers. that's why fmg are considered a very risky bet,regardless of directors interest.
cheers crazypunter