Rio Tinto has a large debt load but it has some very valuable assets and is a quite well run company.
Obviously nickel prices have collapsed, all these companies whether its Freeport McMoran, Rio Tinto, BHP or Xstrata in Switzerland, they have totally collapsed.
I am quite interested in looking at these companies. I bought some already. Here and there one company will fail and other will be sucessful. All I can tell you is whenever the global economy recovers, and who knows, this year, in 3, 5, or 10 years like I think, there will be a lot of pressure in commodity prices, inflation will accelarate and maybe to have a big debt load will be an advantage because as they print money the debt load will essentially diminish through inflation.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
