Mining boom not done yet: NAB

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Amid speculation that the mining boom could be at its peak, NAB chief executive Cameron Clyne commented Monday that this may not be the case given significant investments were “in the pipeline”.

Addressing guests at a Sydney luncheon, he acknowledged commodity prices had peaked and were falling off slightly, but “were still quite high.” 

"There is no suggestion we have seen that people are going to stop that investment. But the other side is that commodity prices are coming off.” 

Clyne further allayed fears of a housing market crash, telling guests: “nothing we have seen would suggest that there is a precipitous collapse about to happen.” 

He said there was a "floor underneath property prices" which would prevent a collapse. 

His comments echo those of RBA governor Glenn Stevens, who last month said the housing bubble was yet to pop.

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  • Bruce James says on 30/08/2012 06:38:04 PM

    BHP recently postponed $83billion of investment which is 1/3 of the total national investment in new projects. Five new coal mines have been shelved across NSW and Qld. The costs of development of the coal seam gas (CSG) projects have blown out to an accumulated $20billion while the sale price of the product is well down on that used in the feasibility studies. Against this background, a banker, whose focus is on keeping people in hock, claims the boom is not over and by implication we should borrow even more money. China has an excess of production capacity and holds $US3.7 trillion in debt instruments from the US, debts which the US can never repay. Get over it! We are not going into a period of sustained growth or improved property values. It is over. Debt funded growth has led us to a prospective third round of money printing (can't call it that though.. better to call it quantitative easing or better still just QE. Soon we will be in for QE3 by the way...) I wish we were not heading towards 5 or 10 years of stagnation because I bought a house in Brisbane at the top of the market. But what I will definitely NOT be doing is borrowing more money unless it is to buy physical gold or silver.

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