BB, While I agree with all that you wrote, IMO, there are some negatives that need to be considered.
1. If interbank lending "freezes" up in Europe, then that has a flow on effect to all banks and makes transacting between supplier and buyer difficult.
2. Already Letters of credit are becoming difficult to obtain and more expensive. A lot of trade occurs with LC's.
3. Once the flow of money slows down, the flow of goods and services slows down and the demand for commodities slows down.
4. Australia, being a commodity exporter will be seriously affected and commodity prices will fall as demand decreases. Any miner that needs to raise cash during this time will find it quite difficult. Strong balance sheets will be a necessity.
Just presenting the other side of the issue. Happy to discuss more.
HT1
KZL Price at posting:
28.5¢ Sentiment: None Disclosure: Not Held
