Friday, 21 May 2010

How about blaming China?

I'm not a share owner -- no, not even indirectly through a super fund -- so at least I'm not writing through my pocket like some commentators of late clearly are.
Thus I am unconvinced of the certainty with which some of my journalist colleagues have been asserting that the fall in Australian share prices and the welcome fall in the value of the Australian dollar is all the fault of the Federal Government and its planned mining super profits tax.
Could it not be that in the last few months Australian share prices have fallen slightly more than those in the United States because of the increasing concern about the immediate future prospects of China as shown by the fall in the Shanghai Stock index?
And what about comparing what has happened on the Australian market with the course of share prices in Brazil, a country which, if you believe those crying wolf will be a  big beneficiary of the Australian government's wrong headedness?
21-05-2010 australiabrazilindexcomparison
Funny that. The Brazilians seem to be doing worse than us.
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