sentiment is fear

It dosen't really matter what any politicians say right now as fear is driving fear at the moment and fundumentals are just a side show. The biggest problem I see at the moment in this financial madness is that the US banks need to be re-capitaised so the markets can gain some traction. All of these step by step bail outs are just fodder for the big black hole that is starting to open wider at the moment.I saw that the former CEO of Lehman Bros crying last night with his head in his hands, a moment that summed up the siyuation right now.

I see that Vale from Brazil are going over to China to start up negotiations for next years contract prices. As their main ore is approx 64% fe it is on the higher side so it will be interesting to see what happens there. Don't forget that all these steel companies in China are still state run so they won't bite the hand that feeds them. All of the news of stockpiles are an oppurtunity for the Chinese to have some bargainig power at the table as I see it in this turmoil. I will hold for better times in MMX.