The S&P/ASX 200 was up by 7 points, to finish the trading day 4,521.40. However the good ole’ USA had another shaky night on the market and our Aussie market has opened lower this morning.

The Index has lost nearly 9% from its January high. This figure is close enough to 10% for analysts to accept this as a ‘correction’. Basically, when you hear an analyst mention the word correction, it means the market has run too far too fast.

The Dow Jones Industrial Average ended the trading session below the psychological important price of 10,000. The Dow finished at 9,908.39, down by 103 points (1.04%). The index dropped nearly 50 points in the last 45 minutes of trading.

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The message from China seems to be, “Forget the coal seam gas, just give us the coal!”

Clive Palmer’s $70 billion deal with supply coal for 20 years to China Power International Development is a massive boost for the Australian resources sector.

If it ever comes to fruition.

Look, it wouldn’t be the first time a multi-billionaire deal was announced with a fanfare of trumpets only to quietly fade away as the proposed deal never gets off the ground.

However, the thing in its favour is that it’s a simple buy and sell arrangement. We’re not talking about complicated foreign ownership deals that need approval from shareholders and the Foreign Investment Review Board (FIRB).

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The Aussie market took a beating on Friday, following the lead-in from the States last Thursday night. The S&P/ASX200 finished down 107 points (2.33%) to 4,514.10. Friday’s market tumble took the index down to a three month low.

The Dow had finished in the black on Friday, up by 10 points, ending the day at 10,012.23.

The Eurozone debt fears still weigh heavily on the US market. European Central Bank President Jean-Claude Trichet said “We expect and are confident that the Greek government will take all the decisions that will permit it to reach that goal.”

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What a farce this last week has been.

It’s proven yet again that the mainstream economists in Australia haven’t got a clue about real economics.

But that’s not surprising, since every last one of them has been brought up on the comic book economics of Keynesianism.

We call it comic book because it’s as though they believe the government is some sort of artist that can draw a bag of money and voila! Problem solved.

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