And so it begins. On the point of bankruptcy, one of EZFKA’s largest builders is getting the 2008 Wall Street treatment:
“It comes as rumours continue to swirl about the future of Metricon, the nation’s largest building company for six years running — it has repeatedly denied experiencing solvency issues, with figures at the top saying it was “business as usual”, but reports this morning suggest the company is nearing bankruptcy.
Representatives from Infrastructure NSW, Treasury, the office of Premier Dominic Perrottet and the State Insurance Regulatory Authority were in talks yesterday about a bailout, which could be hundreds of millions of dollars in value.
The rescue package could allow Metricon to complete 300 ongoing construction projects, or compensate customers who have purchased house and land packages that cannot be completed.”
Some of this is being pinned on the sudden death (seems to be the #1 cause of death these days) of their CEO Mario Biasin. We know that’s patently ridiculous given the last two years and with building costs sky rocketing in the face of ever rising prices regardless.
If Metricon gets one, they’re all going to have their hands out. This is EZFKA, and no-one faces downside risk except the plebs. I wouldn’t be surprised if Harry Trigaboffsteinwitzberg is already waddling his way down to Dom Perrottet’s office where he used to live when Bob Carr was Premier.
My view is that Metricon won’t be the first and Albo may do what Scomo did on mandates and get the states to foot the bill, at least in the first instance. How I have no idea, but that hasn’t mattered for years anyway, let alone the last three years.
Many have posited the theory that they’ll either be forced to save the housing market or save the banks by year’s end. I have no idea, but in my opinion houses (and by that, I mean builders and developers) will get the nod if forced with that choice. They’ll throw a bank under the bus to save face (probably Westpac and they’ll just get merged with another bank) if this worst-case scenario happens.
Bail-in legislation goes brrr.
Coupled with Albo’s 40% ownership for FHB’s and we aren’t far away from Chinese-style state owned economy considering housing is most of it. All it needs now is overt seizure of our mining industry and a few farms and we’re there.