Gina: Nobody saw iron ore crash coming

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It had to be said, I guess, from the SMH:

“None of us predicted it would be as bad as this,” Mrs Rinehart, chairman of Hancock Prospecting, said on Friday at a mining industry lunch in Sydney.

“Nobody was predicting – even the most conservative ones – the ore price crash.”

Of course it’s not even remotely true. And one needn’t even confine one’s gaze to MB. There were several sell-side investment banks that had dour iron ore forecasts falling below $80 even at the peak. An overshoot should always have been considered likely. Some research even warned Roy Hill directly.

It is also a fact that the MB outlook, which was the most bearish in the market, was communicated directly to some of Roy Hill financiers.

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Gina and her banks dismissed the predictions.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.