Interesting times indeed Pat.Scary too, for anyone leveraged...

Interesting times indeed Pat.

Scary too, for anyone leveraged into this market, imagine holding a margin loan on RIO right now or even BHP? The big Australian is diversified and even they are copping it in the neck.

Hey at least I'm not holding SDL just pop over to that section of HC and you'll be scorched by the shareholder fury. And that's after getting a T/O offer!

Again I stress - this is all happening against a backdrop of fairly good global equity markets. If the Eurozone or the DJIA suddenly gaps down... Oh Lordy...

I guess on the flip side of that it might get Bernanke moving with his next round of QE and that could be enough to once again light the fires of inflation. So a nice big equity collapse might be just what the doctor ordered. Short term pain for medium term gain? And then of course some long term agony when it all happens again down the track.

To be honest I'm fearful for the Australian and in particular the West Australian economy right now. If iron ore (and coal along with it) is destined for a long term bear market the entire country will descend into a terrible economic pain just like the rest of the Western world.

Hopefully this dip in iron ore pricing is temporary and our country can continue to thrive.