Comments on: Babcock collapse to be a global blockbuster

By: Kranky

Kranky — Thu, 01 Jan 1970 10:00:00 +0000

I got lumped with some Babcock “preference shares” when they took over Alinta a year or so ago. The outfit seemed like a flakey cook up between a few Mosman corporate lawyers and some over enthusiastic commerce graduates then, and I wasnt that surprised when the complicated charade started to collapse this week. Fortunately I didnt have too many and managed to run to the phone quickly enough today to at least have something left. No doubt shortly much of the outfits funds will be frozen and suspended from trading but look ,once they start talking about MEETINGS WITH BANKS - forget it, thats aussie corporate code for “WELL AT LEAST I’VE CASHED OUT MY EQUITY”

By: nigel

nigel — Thu, 01 Jan 1970 10:00:00 +0000

Wow!

Babcock and Brown own the South Australian electricity assets right? NRG/Flinders partnership which is a funny money lease arrangement back to the GLC - General Lessor Corporation - a division of treasury tucked away but free from the prying eyes of the public or FOI legislation - hmmm, no mention lately in the Auditor Generals reports...but when we go back a bit we find this extraordinary fun bit, well actually not much fun if you are an employee of the coal mining operation where it seems the SA government agreed to a "Proclamation of Immunity" to ensure smooth sailing and profits ahead, after the cash exchange and funny money lease arrangements were made:

http://www.audit.sa.gov.au/99-00/etsa3/part1.htm
1.4.2 Leigh Creek Township Lease

The State has granted to the successful bidder a lease of the Leigh Creek Township as part of the disposal process for Flinders Power......
........Whilst I understand, that significant consultation was undertaken with Leigh Creek Township residents in relation to the proposed lease arrangements and I note, that the vast majority of Leigh Creek Township residents are employed at the Leigh Creek coal mine, of specific concern to me are the provisions of the Proclamation of immunity from liability which was made pursuant to section 35 of the Electricity Corporations (Restructuring and Disposal) Act1999.

Under this Proclamation, the Generation Lessor Corporation and the Crown are both given immunity from any statutory, civil or criminal liability with respect to the Leigh Creek Township Lease including any liability for loss, damage, injury or death suffered by a person through any cause whatsoever while, or, as the result of being in the Leigh Creek Township.

For the State to seek to exempt itself from liability to the residents of Leigh Creek Township from its own negligent or criminal acts represents a failure by the State to act responsibly to protect the public interest. Accordingly, I believe consideration needs to be given to urgently obtaining legal advice as to the relevant construction to be placed on the Proclamation and, if necessary, amend the Proclamation so as to ensure that the legal rights of the citizens of Leigh Creek Township are no less vis-à-vis the Crown than other citizens of this State.

Is one to believe this is the first instance of the denial of constitutional rights at the contractual arrangement of a state government of Australia? If so, congratulations South Australia you have elevated your status back in time to the antics of ye old swashbuckling pirate of the high seas Chris Columbos.:

Proclamation of Immunity applied thus same to lawless thugs on Columbus expedition:

The requisition to the municipality of Palos runs thus:
"In consequence of the offence which we received at your hands, you were
condemned by our council to render us the service of two caravels,
armed, at your own expense, for the space of twelve months, whenever and
wherever it should be our pleasure to demand the same:" (30th April,
1492.) A proclamation of immunity from civil and criminal process to
persons taking service in the expedition was issued at the same time.
The ship of Columbus was, therefore, a refuge for criminals and runaway
debtors, a cave of Adullam for the discontented and the desperate. To
have to deal with such a community was not of the least of Columbus's
difficulties.

The Life of Columbus: http://infomotions.com/etexts/gutenberg/dirs/1/5/3/3/15336/15336.htm

So I guess this is one "blockbuster" which the residents of Leigh Creek will not want to miss, otherwise they might find themselves up another creek without very good paddles:)

By: Fedman

Fedman — Thu, 01 Jan 1970 10:00:00 +0000

B&B would love for the Aussie Reserve Bank be at the ready with the same implied guarantee which the US Fed is giving its basket cases – most lately: Lehman Brothers? US Banks are looting US taxpayers via the Fed’s discount window exchanging toxic paper for marketable Treasuries. Aussie banks are doing the same and going one better by looting the Future Fund too! The banking industry has always been an illusion based fractional reserve lending underwritten by worthless fiat currency. The pulling aside of the confidence curtain is what will kill B&B. If I were at the Millionaire’s factory today, I’d be ‘Naked Shorting’ the buggery out of B&B and herein is the next big scam to be exposed about our rotten investment banking and stock markets. I’m putting my money under the bed before the lines form outside the teller windows. I feel Depression coming on? The solution will not be a Bex and a good lie down.

By: Roger

Roger — Thu, 01 Jan 1970 10:00:00 +0000

Given that BBW has the lion’s share of “real” assets, what happens to them? Do they just get cannibalized by the mothership and other satellites? Does any part of this house of cards retain anything near its current value? It’s amazing how common and (temporarily) lucrative Ponzi schemes still are after all these years!

By: Keith Bedford

Keith Bedford — Thu, 01 Jan 1970 10:00:00 +0000

B&B must have borowed up to the hilt and now the chickens have come home to roost. I wonder how many others who have also been borrowing are in the same boat. I see many Bonds in the future. I fear for our economy.

By: mpo

mpo — Thu, 01 Jan 1970 10:00:00 +0000

Fedman, never a truer word was spoken. You hit the nail on the head there.

By: Gary Johnson

Gary Johnson — Thu, 01 Jan 1970 10:00:00 +0000

he he he careful fedman i fink dat man from sydney gonna call you a conspiwacy theorist again but you right bout dat vale being slowly lifted

gAry johnSON

By: The Kid From Bondi

The Kid From Bondi — Thu, 01 Jan 1970 10:00:00 +0000

Fedman, be careful putting fiat currency under the bed … Germany 1930 comes to mind. And now for the really bad news … even if you have gold or other precious metals the open market for actual exchange of these items of value is no longer open to the public. In just 350 years the world has become a debt laden “emperor has no clothes” financial system. No conspiracy theories here, just reality. Remember the self proclaimed brightest guys in the room regard themselves as above the law, laugh at “us” and these deluded and inept so called masters of the universe, I know quite a few of them here and in the US, never repeat never play with their own money. I have yet to meet one who cannot be played off the break, with one hand tied behind the back, by a regular old style “milk bar owner” working seven days a week and building, with hard work and over a number of yeaes an “owned outright” property portfolio worth millions. The joke is on us, sadly.

By: Glenn

Glenn — Thu, 01 Jan 1970 10:00:00 +0000

stu, that is possibly the worst looking web site i’ve ever seen, well it is the worst actually.

By: Tom McLoughlin

Tom McLoughlin — Thu, 01 Jan 1970 10:00:00 +0000

NSW Stateline reports tonight that the NSW public energy assets are not going to be sold because the numbers are against it in parliament from across the political spectrum. Maybe they watched Enron on google video. But keep flogging the idea the private sector are better able to handle climate change ….the faith in psychopathic multinationals is touching.

By: stu

stu — Thu, 01 Jan 1970 10:00:00 +0000

Crikey!

Check out http://www.thehenryreport.com for the latest. Its a new Australian-Drudge like website.