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  1. #11
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    Quote Originally Posted by Gritt23 View Post
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    Learn what? Learn what the concept of "too big to fail" actually means?

    As someone who has worked in Construction for a decade, Carillion are a massive player, and if they were to fail the damage that does to the sector, and the economy as a whole would be massive. Sites all over the country would stop instantly, their employees would be redundant, their sub-contractpors wouldn't get paid. That is a whole raft of smaller companies who will see damaging financial hits which could in turn push them into bankruptcy. So that next tier would have casualties, numerous companies, who they themselves employ 100s of people. Then in turn the companies they sub down to again.

    Add to that plant companies and numerous material suppliers who are supplying the multitude of Carillion sites would also take a massive hit on those contracts. The immediate impact across the industry would be very damaging, but it is then how everyone acts after a big failure like that. Suppliers would tighten credit terms, banks would become more reluctant to lend to the industry, clients would require more bonds to be taken out, and that cost would filter all the way down as well. All of these knock-on effects would also bring casualties, as it makes cashflow harder with everyone being in a race to get paid quicker, while banks reduce lending.

    How much does Construction affect the whole economy? Well, it's roughly 6.5% of GDP and employment in the UK.

    Yes, in my view, Carillion is "too big to fail", the Government will need to step in and ensure they don't go pop, as it will be too damaging for the industry, the economy as a whole, and that affects us all.
    So it does sound like we haven't learned from the banks. Having single companies risking a huge chunk of our economic well-being is a bad idea.

    With the banks, they have chosen to micro-manage the banks reserves / liabilities and to regulate them to allow for multiple failures and massive economic downturns.

    Perhaps the government need to insist on similar financial and regulatory stability for all of their major contractors?

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    • #12
      Stupid IDIOT Ernest's Avatar
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      Private companies make profit they keep it. Private companies make losses and the state bails them out like the banks. That is how capitalism works, trebles all round for the fat cat bosses !!!!
    • #13

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      bunch of ***** treating their staff like shit by all accounts, Lewes and ford Prison maintenance will be affected
      regards
      DR
    • #14
      Members Gritt23's Avatar
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      Quote Originally Posted by CHAPPERS View Post
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      So we're going to end up footing the bill, basically?
      Depends on your perspective. Not quite sure what bill we will end up footing, however the bail out happens, but I do expect the Government do bail them out.

      If it's done as a "loan" then the Government will get this back, as I would presume it will done within the HS2 contracts, which I believe Carillion have lined up. Perhaps an early payment deal on those contracts, but that wouldn't mean the Government pay more, just earlier to help them through their current strife.

      Or if it's done with the Government buying up shares in Carillion, then they are doing it at an incredibly low price. Buy low, reciver teh company and sell high, is a recipe for financial success, not "footing a bill."
      "I looked straight across to Graham Turner and their whole bench was in tears."
    • #15

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      Quote Originally Posted by Gritt23 View Post
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      Depends on your perspective. Not quite sure what bill we will end up footing, however the bail out happens, but I do expect the Government do bail them out.

      If it's done as a "loan" then the Government will get this back, as I would presume it will done within the HS2 contracts, which I believe Carillion have lined up. Perhaps an early payment deal on those contracts, but that wouldn't mean the Government pay more, just earlier to help them through their current strife.

      Or if it's done with the Government buying up shares in Carillion, then they are doing it at an incredibly low price. Buy low, reciver teh company and sell high, is a recipe for financial success, not "footing a bill."
      Thanks, I'm a bit dim so nice to have it explained.

      What about the pension deficit?
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    • #16
      Banned looney's Avatar
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      What happened to the good old days when companies that were "to big" got referred to the monopolies commission and sorted out/

      My attitude to the company would be good efffing ridance. One way or another its due for scrap value and some of its directors need some time in Prison.
    • #17
      A. Virgo, Football Genius
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      Quote Originally Posted by Ernest View Post
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      Private companies make profit they keep it. Private companies make losses and the state bails them out like the banks. That is how capitalism works, trebles all round for the fat cat bosses !!!!
      not quite. private companies make losses and investor lose their money, but unions and others plead special action for the employees. i've never heard of investors being bailed out, even with the banks the major bond holders and shareholders took a bath. government stepped in to protect the public, thats what you want shirely?
      Daily Mail readers are living in a perpetual hell, expecting their homes to be overrun at any minute by hoodie wearing, skunk smoking, muslim, transgender, asylum seekers.
    • #18
      Resident pedant Triggaaar's Avatar
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      Quote Originally Posted by Ernest View Post
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      Private companies make profit they keep it. Private companies make losses and the state bails them out like the banks. That is how capitalism works, trebles all round for the fat cat bosses !!!!
      I'll drink to that
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    • #19
      Members Kalimantan Gull's Avatar
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      How can this company be failing? Huge amounts of healthy government contracts, how have they got to this point?
    • #20
      Mama said knock you out. LlcoolJ's Avatar
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      Quote Originally Posted by Kalimantan Gull View Post
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      How can this company be failing? Huge amounts of healthy government contracts, how have they got to this point?
      That's what I'd like to know, but I'm too lazy to do any research so hopefully someone will post the information on here.

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