''It's easy to be beguiled by the drama of a collapse that might always be reversed. The Swiss investor Marc Faber (known as Dr Doom) identifies four mega bubbles in the last four decades, the biggest of which is the tenfold increase in the price of iron ore. He is able to produce a frightening graph making this year's collapse in the iron ore price look like the earlier collapses in the price of gold, the Nikkei and the Nasdaq.
The accepted wisdom had been that an extraordinary 18 million Chinese - the entire adult population of Australia - were pouring from the countryside into cities each year. Housing them had required steel, which could only be made from iron ore. The wisdom is being questioned because China's growth is slowing, it has unsold homes and it is closing steel mills.''
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