the answer to the recent falls is very simple: DEBT!thats it -...

the answer to the recent falls is very simple: DEBT!

thats it - FMG have a tonne load of DEBT, and want to take on more DEBT.

Now we have all this fear re greece, europe creating a contagion like lehmanns to the euro banks that hold greek debt etc etc

similar to GFC, a massive BAILOUT FUND is necessary for greece and for the banks all round europe that may have to write off tonnes of assets

So FMG have a tonne load of DEBT, and thats the REAL ISSUE HERE FOR FUNDIES

Its a high BETA stock with all the massive debt it has -doea well in boom times; does very badly in gloom times.

DEBT is a no no in this kind of economic atmosphere

Im looking for the BLOWOUT to occur when greece defaults or when the real losses are disclosed by euro banks whichll have to get more bailout money - - -one things for sure, europe will have to INFLATE and PRINT A TONNE LOAD OF MONEY TO HELP GREECE THE THE EURO BANKS AND THE EURO ZONE

*** But theres ONE good aspect here: europes money supply is only HALF that of the USA! That in effect means they CAN UNFLATE and PRINT MONEY , TWICE AS MUCH MONEY If need BE! AND THEY WILL PRINT MONEY. ITS ALL A GAME OF CHESS. USA PRINTED FIRST AND THEIR USD WENT DOWN RELATIVE THE EURO; NOW EUROPE HAS WILL INFLATE AND PRINT MONEY TO GET OUT OF THE MESS AND THE EURO WILL GO DOWN RELATIVE THE USD. IN THE MEANTIME , THE TRADITIONAL EURO ZONE ECONOMIES LIKE GERMANY, NTH EUROPE , FRANCE AND THE UK,,, WHOSE ECONOMIES ARE STILL PRETTY SOUND, WILL HAVE ALL THIS INCREASED MONEY SUPPLY OF EUROS,,,,AND EVENTUALLY ALL THIS EXCESS EUROS IN THE SYSTEM IN THESE ECONOMIES WILL FILTER THROUGH TO THE USA AND THE REST OF THE WORLD.

* REMEMBER A MAJORITY OF THE WORLDS CURRENCY IS THE USD ABOUT 65%, THEN THE EURO ANOTHER 20% OR SO, THEN THE BRITISH POUND 5%, THEN THE YEN 5%. EUROPE INFLATE AND PRINT MONEY....THE UK , GERMANY, FRANCE , NTHN EURO ECONOMIES WILL HAVE MASS EXCESS EUROS IN ECONOMIES THAT AT PRESENT ARENT TOO SHABBY....THEY WILL SPEND AND CREATE DEMAND....THE USA WILL BENEFIT AS WILL THE REST OF THE EURO ZONE. THE EURO WILL GO DOWN RELATIVE THE USD LONG TERM. THUS THE 2 DOMINANT CURRENCIES WILL BE ON PAR. THE US WILL HAVE ACHEIVED ITS GOAL OF BRINGING EUROPE AND THE EURO DOWN TO SIZE.

In the meantime FMG will suffer as long as theres a crises in europe re greece and the banks

IN THE LONG TERM FMG WILL PROSPER FROM ALL THE INFLATION THAT EUROPE WILL CREATE BY PRINTING

BUT THATS THE LOOOONG TERM

NOW WE HAVE TO DEAL WITH THE PROCESS OF THE EURO BAILOUTS ROUND AFTER ROUND ALA THE USA

AFTER ALL THIS, FMG AND MINING STOCKS WILL BE GOOD INVESTMENTS