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Downturn not the time to increase debt

Who pays? That is a question no-one seems to be asking in the debate over solar-power subsidies, or the bigger question of who pays for the state government’s debt binge.

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Perth
Tim Interesting comments - the miners [and speaking as a miner] have seemed to get it wrong and done so many times over many years resulting in increased cyclic behaviour of their businesses. Logic should say buy assets when cheap [in down turns] not at the top in over priced $ but use these dollars to expand their current assets and add value to their business. The converse applies in down turns, cut production to maintain price value and cut costs and improve efficiencies, Additionally use low cost debt to buy assets for future development with debt to be repaid in booms. - Unfortunately due to short term CEO appointments and mediocre Boards [mainly sitting there for their fees and egos], the results are extremely poor direction and shareholder value being destroyed or going sideways. Also but separately the current sharemarket acts as a casino and has lost its original form due to major hedge and other funds looking for short term returns in a long term business and also over influencing CEOs and Boards..

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Total revenue

1st-Gold Corporation$8.10bn
2nd↑Synergy$3.10bn
3rd↑Water Corporation$2.55bn
4th↓GESB$2.04bn
5th-Western Power$1.78bn
29 state government businesses ranked by total revenue - this year

Number of Employees

State Government Businesses

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