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It’s mostly good new today for big iron as share prices rally. BHP is up 1% and RIO half that. However, FMG is down 2.5%, below $2 again, as its ponzi-bond rightly spooks equity holders. After all, they’ll lose their dough before the ponzi-bond holders will and if no banks will lend to FMG on favourable terms the what are investors going to demand? To the indexes:
The idiocy spreads are all closing again with FMG at record a new IQ record:
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Junior doom rolls on:
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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.
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