Nice try Doogsie, but going to have to expose your flawed ideology again!
"Its is our governments duty to save any amount of OZL from falling into the hands of a communist government which has an underlying insidious future economic and military strategic objective."
Doogies firstly your heading off into a irrelevant tangent. In this thread I'm simply opposing your ideology that the government should save companies from going bankrupt. I'm not totally opposing you on foreign ownership, I agree with you to a certain extent we need to be very careful who are buying what Australian assets.
"I say: Yes they do get snapped up Garhod, in normal economic circumstances they would, but it seems that no private owned company wants to come forward and do that, because these are not normal economic times? Privately owned are welcomed “yes” but not 100% communist government owned. "
"but it seems that no private owned company wants to come forward and do that"
Yes you are right these are not normal circumstances. So what? You need to understand a asset is only worth as much as what someone wants to pay for it. In other words when the price is right someone will snap the assets up. Hence the word WHEN not if. MIM pulls the bid, OZL goes under, assets get sold in a fire sale. Only people who get hurt is the shareholders and maybe the creditors depending if the sale covers outstanding debt. The asset is still there, its just its now owned and managed by another company.
"This is where the government needs to step in, because these are not normal economic times. Get it through your thick skull, if the Chinese government can see a profit can be made with this company in the long term, then our government should be able to see this as well?"
Whether this company can be profitable in the long term or not clearly isn't the point. The point is as stated many times before its not the tax payers role or the responsibility to bail out companies. Not only is it not the governments responsibility, you head down this track you setting a very dangerous precedent. Government bureaucracy as been proven many times in the past is incompetent at best. Anyway who says it will be a profitable company? This crisis isn't over yet. What if the world economy gets to a state of depression? End of the day if the government refinanced the debt it would be risking tax payers money, not saving the assets, only to be accomodating the shareholders. This is not the tax payers burden!
"I say: How does the asset continue to return wealth for our country, if it de listed from the ASX and owned 100% by the Chinese for example????? I am glad your not the Treasurer, we would be stone motherless broke by now if we employed your ideologies"
Doogie are you completely serious? What is profit? Its residue, that's what it is. Its what is left over after all associated costs in running the business are paid for. In other words OVERHEADS. Overheads far far outweigh economic return to the country then profit ever will. The costs of running a mine are massive. Royalties, Stamp duty, employment, clothing, energy, parts, accommodation, servicing commodities, chemicals/agents etc, travel expenses, administration costs, legal costs. communications costs.... the list goes on. Then you have multiple industries handing the commodity once it leaves the site. Where does this money go? Back into the Australian system. This is why countries including Australia promote foreign investment to a degree. The returns far outweigh what we would lose in the profit the company makes. Stone motherless broke you reckon? Think you need to rethink that one.
"I say: Where have you been Garhod, the financial system was crippled due to the mindless sub prime lending - bad lending practices for over valued assets."
This is the crux of your problem Doogsie. You don't look behind anything. You don't look at anything in depth or detail. You got this one dimensional view of everything. Subprime was the end result of government action/inaction. Read the below article and you'll learn it was in fact the governments meddling in the free market that led to the subprime crisis. However the article only highlights part of it. Learn how the reserve system operates over there and you'll become aware of a much greater problem and how it contributed. Also educate yourself in respect to how the US government was bailing out the financial sector a decade ago that set a very dangerous precedent that help eventuate the mess we are in now.
http://www.morgancountycitizen.com/?q=node/9206
"Yes the bankers will be helped if the debt is finalised, but at least we will preserve a great wealth generating asset that will last for years to come"
lol preserve what? It will generate wealth for years to come regardless of who owns it. If OZL goes bankrupt you think PH stops running forever? The banks own the assets anyway. If OZL goes bankrupt the shareholders get the scraps if anything is left over. Your caught up in this mentality that if OZL goes so does their assets.
"Keep them - the large mining companies Aussie owned and operated at all costs, because if they go, we have nothing left, no backbone our economy will be motionless, we will own nothing “ZILCH”."
Fine. If that's what you want then its only fair OZL sell their operations in Laos and Indonesia back to the respected countries. And BHP can do the same with their scores of operations in Sth America, Sth Africa, Africa, United States, Canada, Indonesia. Its also fair that no non Australian resident can own shares in Australian mining companies. Woops there's our stock market crashing. Now lets buy back all our mining interests. Woops we haven't the money to do that. Better lend it then. Who owns the mines then? Foreign investment banks. Like I said before. Flawed ideaolgy!
Foreign investment promotes wealth, it doesn't evaporate it as you put it. Do you think the Iron Ore in the mid west of WA would get off the ground in WA without it. Why do governments promote and seek it. Because our pockets aren't deep enough. Foreign investment in Australia is something in the order of AUD$1.5 trillion a year. You want to break our countries backbone and grind it to nearly a complete stop. That's easy, get rid of foreign investment.
You have much to learn Doogsie!
OZL Price at posting:
$5.55 Sentiment: None Disclosure: Held
