RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:EXTENDED 30 DAYS MAY 30TH Listen, I understand your issues with the Chinese and about our manufacturing being uncompetitive with China... Their lack of regulations, unions, fair labor laws, general environmental concern and lack of general human emphaty and equality is something to be concerned with. That being said, there is no point in becoming racist.
All I'm saying is that China is in a position to acquire Canadian assets, because they play the game much better than Canadians do! While their economy is able to create huge surplus, they buy out massive amounts of gold and build wealth meanwhile our canadian government sells off ALL their reserves of gold and run an annual deficit of 30 billions!
Our economy is so debt infested that we can't even have a normal "market" interest rate on our savings! The bank of Canada has to keep rates at ridiculous levels to keep the whole system on imploding on itselt! To keep the government servicing the debt, to keep the housing market from deflating and to keep Canadian endebted families from being drowing from their consumer debt and mortgage!
You do not build a strong economy on debt! You build it with savings which simply represents stored labor!
Are the Chinese perfect? Hell no! But they can at least create a surplus (no matter how un-ethical you perceive their way of getting there), and naturally, try to use their savings to their advantage by buying out everything in sight to get a fair return on their investment.
Objectively there are many advantage for Canada in this sale.
1- For investors, people who were long LRE get 52 cent rather than 0!
2- For investors, debenture holders get 75% of the principle as oppose to 0 or slightly above
3- For Lenders, the banks get their bad loans re-imbursed rather than having the LRE management default and having to organise a fire sale of the assets that would fetch less than what the Chinese are offering
4- For the employes, they get to keep their jobs
5- For the government, they get to keep some royalties coming in from the exploitation of the assets
I could probably dig and find much more reasons why this deal benifits canadians... I actually have a very hard time figuring out why this deal failing would benefit any canadian?? The other argument I could see would be egoist, stubborn and irrationnal ones revolving around not allowing the Chinese to benifit from their better capitalist position.
I'm also just pointing that you should not blame the Chinese for this situation... You should blame the management of LRE for making a terrible job of buying assets at the top of a cycle using debt instuments and continuing to pay a dividend for way longer than it was needed financed by debt. The general incompetence of the management was really the problem here...
Furthermore, you could also blame our government for allowing our central bank to push debt rather than savings. You can blame Trudeau for running a ridiculous deficit that we will have to pay back some day. You can blame his father from reforming the bank of Canada in 74 and screwing all Canadians at that moment. You can blame the Harper government for all the free trade aggrements allowing the Chinese to benifit from their moral lacking system.
Like I said, I understand your frustrations from being the withness of our country being bought out by China, but this is actually our fault! Regardless, there is no denying that this sale is actually quite helpful to Canada as a whole. The question is what are we going to do to put ourselves in a better position to not get bought out in the future or to start doing some buying of our own?
P.S. sorry for the spelling mistakes, no time to proof read