Stokes rightly sees WA headed for 1991 recession

Monday 20 October 2014

From the SMH comes a blunt assessment from Kerry Stokes that Western Australia is headed for a recession:

“They [BHP and Rio] are pretty big smart cats,” Mr Stokes said.

“Frankly if you can sell something at $80 a tonne that cost you $20 a tonne you might want to sell as much as you can. I understand that. That means everybody else who competes has got to get a whole lot more efficient.”

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.