The Australian Cognitive Dissonance

25 Jun

Interesting front page to The Australian online today.  The following lead stories displayed as shown below:

BUSINESS LEADERS: Boom fracturing our country

PAUL KELLY: Alarm bells sound on economy

GEORGE MEGALOGENIS: Our economy’s fine

IN DEPTH: Stop complaining, our economy’s fine

And this is widely considered to be the premier national newspaper?

No wonder the country’s a mess.

2 Responses to “The Australian Cognitive Dissonance”

  1. JMD June 25, 2011 at 7:25 pm #

    Speaking of cognitive dissonance, the share prices of many of the miners is hardly screaming ‘mining boom’.

    I should know, I bought a handful of gold, silver & nickel ‘juniors’ at literally the height of the GFC, for pennies; they are still pennies & a couple are even lower than in ’08, if that were possible.

    A real mining boom would surely see speculative interest in miners of all stripes? I’m skeptical of this whole ‘mining boom’ meme, particularly as it seems to be trotted out as the reason for the ‘strong’ dollar. It is not beyond the realms of possibility that the ‘strong’ dollar is in fact a gargantuan credit bubble.

    • Whacked June 27, 2011 at 1:24 pm #

      “is in fact a gargantuan credit bubble”

      Too many factors at play, far to many.
      The AUD is dependent on whether the RBA and whether they increase the interest rates. Risk is still on.
      Currently a strong correlation with our resources, but watch the AU price.
      Capital has only one purpose and that is built on greed, so it flows through to highest earner (it knows no borders).
      Should any risk be perceived in our markets, from any source, then the AUD will be deflated quicker than one can blink.
      There is a mining boom. Mining profits with mining companies and that will not play out into the share price, as speculation is not in the market… as for the penny stocks the costs internally (for directors and share dilutions for mates) are far to great and any possible capital increase not on the cards unless serious money expended, directors will not put their hands in their own pockets .. .. even though they like to bleed the bank.

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