SabineSurely you have to be kidding!  I have read some of your...

Originally posted by sabine

As @Nightmarez3k  declared it: “the profitless boom”
From the last link above :
... “Flagging that issues may be more widespread in a sector beset by razor-thin margins, Mr MCann said Lendlease was “working closely” with state government agencies and industry bodies on a “more balanced allocation of risk on major projects within the Australian engineering sector”..

Maybe government should be stumping up some low interest loans to Australian companies to cover them until debts get paid instead of squeezing them on the infrastructure projects until they go bankrupt if they are little or end up like Lendlease if big .

Sabine

Surely you have to be kidding!  I have read some of your other posts, and often found them very worthwhile.

However, to suggest that the government step in to save our skin would be just about the very worst thing that could happen.

While I am an RCR shareholder - unfortunately with an overextended portfolio position - as a taxpayer, I would be most alarmed if any such move were contemplated by the government.

Where would the money come from - perhaps take it from drought relive funds for farmers, cut foreign aid some more, from the NDIS or other social services?  All this, while Australian tax payers seek ever lower tax rates?!?

However, putting aside the above question, what would that do to the corporate culture of Australian companies? Giving low interest loans to this sector now would send the clear message to ALL company Directors that "You can f$%k up any which way you want - the government will bail you out in the end".

I am all for strict regulations and even stricter enforcement of those regulations, but for the capitalist system to work, we can not rely on government to bail out private businesses on a regular basis.

Only by us "greedy" RCR shareholders getting hurt and then licking our wounds - in my case probably for years to come - will we have the right amount of "fear" to avoid the same mistake the next time we make a risky investment decision.

"Greed" & "Fear" - that is what it comes down to.