Big iron crashes into abyss (updated)

Big iron is crashing with BHP down -4.5% to a new post-GFC low. RIO is down -2.3% to a new post-GFC low but bizarrely FMG is up slightly despite now losing $1.10 on every tonne it ships (update: down -4.3% now):

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That the equity market has now knocked as much value off BHP as it has FMG is surely a new low in stupidity given only one of them is at risk of going out of business but I’ve given up fathoming the depths of equity asininity. All three idiocy spread are now closing but only slowly because iron ore is falling so fast:

Dalian has opened under pressure down 0.5% and I’m sorry to say but this has much further yet to run.

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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.