Australian Mining - Detroit???You can't compare the two -...

Australian Mining - Detroit???

You can't compare the two - Detroit is a mess. Americans are starting to cotton on to the fact that if you buy a Japanese (or even a korean car) it will actually last for a lot longer and is a far better experience overall. Part of the Detroit business model was the built in perishability in the cars - you'd buy it and buy a new one 3-4 years later (often because the car NEEDS to be replaced)... In short - i am not sure Detroit deserves a bail out - their mea culpa??? Too little too late (that goes for the employees and unions too)... There has been a structural shift away from Detroit - and no amount of money will change that... The problem is if they get the cash the overseas operations Opel, Holden (ones that have value) will go down with the parent in a slow death spiral...

The Australian mining industry is different - it commodities... There are no structural shifts in those (always gonna be neccesary - just at different rates), if the Government helped out OZL it would in all likelihood get the cash back - BUT where's the moral hazard??? Everyone will be expecting the same treatment - just like because of that SGW ruling - every man and their dog wants equal ranking with creditors...

Lucky that we have Swanny on the job ;)