2015 will be ugly in the West! WA Treasurer flags revenue fears after iron ore price plummets!; Iron-Ore Bears Weigh Down Worst State Bonds: Australia Credit
Tweet Topic Started: 19 Aug 2014, 04:52 PM (1,574 Views)
Western Australia’s bonds are the nation’s worst-performing regional debt this year as an iron-ore rout clouds the finances of a borrower that’s already lost its top credit score at Standard & Poor’s.
Securities sold by Australia’s biggest state by area have returned 5.1 percent since Dec. 31, compared with 6.3 percent for an index of the nation’s provincial notes, according to Bank of America Merrill Lynch. The price of iron ore, the state’s largest export, has slumped 30 percent to $93.40 a metric ton over the same period and entered a bear market, forcing miners in the remote Pilbara region to cut spending and jobs.
While Western Australia has based its spending plans on iron ore staying at an average $122.70 a ton this fiscal year, analysts surveyed by Bloomberg predict the steelmaking material will hold closer to current levels through 2018. The state’s operating surplus for the current period was forecast at just A$175 million ($163 million) and the iron-ore plunge means inflows could be trailing estimates, according to revenue sensitivities provided in the May budget.
West Australian Treasurer Mike Nahan has refused to rule out tougher budget measures as the Government deals with a period of low iron ore prices.
…He said the Government may have to make some tough decisions to combat any revenue loss.
“Our mid-term review, will, if the price hasn’t improved … write down a substantial decline in our iron ore forecast, and iron ore represents 20 per cent of our income,” he said.
“I guarantee I look at the price every day, and it’s something we’re going to have to address.”
He said the Government was looking at ways to tackle the problem, but refused to speculate on areas of Government spending where the axe could fall if prices did not pick up.
“Those are issues we’re going have to deal with,” he said.
“The commitment the Premier made at the Liberal Party state conference was that we will achieve a surplus.”
Wish this one away skamy? Tell me how wrong I've been? Hahahaha!
The reality is that these days people can see through bull shit artists like Skamy easily! Im not sure why she persists.
I think you are right, i tend to think her rants are a form of Skamy busy @ preying, hoping interest rates to go to zero so she can steal off future generations!!
Furthermore it looks as though those Chinese electricity numbers (18 months ago) showing the chinese had been caught with their hand in the cookie jar was the turning point.
The issue here doubleview is that Skammy hasn't held a real job in WA mining or for that matter Oil & Gas.
Had she been in the industry (with her credentials) the rhetoric might have been very different now wouldn't it?
The last shyster to snake oil us about the present and future of mining/ Oil & Gas is now long AWOL.....we can confidently assume his ass is grass......
The issue here doubleview is that Skammy hasn't held a real job in WA mining or for that matter Oil & Gas.
Had she been in the industry (with her credentials) the rhetoric might have been very different now wouldn't it?
The last shyster to snake oil us about the present and future of mining/ Oil & Gas is now long AWOL.....we can confidently assume his ass is grass......
The issue here is that skamy is an idiot. She showed us that when she though Perth land was tripling in a year. Pure utter stupidity. Blind to reality, she only sees what she wants to see and doesn't question. Easiest way to lose money.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
The issue here doubleview is that Skammy hasn't held a real job in WA mining or for that matter Oil & Gas.
Had she been in the industry (with her credentials) the rhetoric might have been very different now wouldn't it?
The last shyster to snake oil us about the present and future of mining/ Oil & Gas is now long AWOL.....we can confidently assume his ass is grass......
Yep Timmy the wank vanished like a thief in the night, exactly as iron ore drops off its cliff!
I have been posting for over two years on here and despite being a newcomer to the State, I have consistently been correct while you eejits clutch at any straws you can find to keep your cheap house dreams alive.
One of you particularly thick bears just noticed for the first time that some house prices here have dropped by 40% since 2008, and still they wait around in fear or greed for more reductions. It is true what they say about "dyed in the wool" bears like you guys- you will never ever be able to see a real estate bargain.
You are too afraid of every silly newspaper report, don't you ever get sick of hearing over and over and over again how Perth is gonna crash because of this that or the other?
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
I have been posting for over two years on here and despite being a newcomer to the State, I have consistently been correct while you eejits clutch at any straws you can find to keep your cheap house dreams alive.
One of you particularly thick bears just noticed for the first time that some house prices here have dropped by 40% since 2008, and still they wait around in fear or greed for more reductions. It is true what they say about "dyed in the wool" bears like you guys- you will never ever be able to see a real estate bargain.
You are too afraid of every silly newspaper report, don't you ever get sick of hearing over and over and over again how Perth is gonna crash because of this that or the other?
Meanwhile smart ones on here will eventually cash in on the hapless investors that are getting pantsed now in WA.
Like these ones below... selling as rents get pummelled... funny that. Don't even mention the prices.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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