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On the face of it Bombardier seems a success story but be assured that they go crying to the Quebec and Canadian Federal government every time they get over extended or face up to some stiff competition for a juicy contract. Typically they demand low interest loans, this hasn’t been happening much of late due to low interest rates and the liquidity factor. As soon as rates creep up you can be sure they’ll be there cap in hand to stave off Brazil’s Embraer. With the Loonie so strong it won’t take much of an interest rate rise to bring Bombardier back to the Government trough for concessions.

Overall no different than Germany supporting Siemans or the US support of GE, only in Canada we haven’t used Government financial leverage be create a massive military industrial complex as corporate welfare, just a moderate one.

Not that we don’t enjoy killing people, Afghanistan being a case in point. Last Sunday’s Edmonton Sun was particularly supportive. Including an article about a young gunner who didn’t even have a drivers license yet who couldn’t wait to use his M777 howitzer in action. His mother should be so proud.


For above:

Elaine Meinel Supkis

Thanks, Canuck, for the insights. Japan charges its industries .5% interest, the lowest on earth, bar none. No industrialists cry to the Liberal Party there! They own it. And the entire system of government plus the press. This is why they enjoy a wonderful depression there coupled to a tremendous growth rate in the world.


Massive, low-interest, questionable gov't loans are part of the culture of corruption in the US too. See, for instance:



Although corruption is endemic with these GovCorp fiscal initiatives particularly in recent times, historically the graft aspect was not so overt or as high a valuation of the financial arrangement. Every single large corporation on the planet with a manufacturing or production aspect was seeded and protected by Nation States in some manner. This protection was required in order to husband the nascent industries and lock out rival competition from other Nation States. To this day manufacturing industries requiring high capitalization require regulatory protection and sweetheart deals from governments to survive as they’re easily out maneuvered by other Nation State/Economic Block machinations.

Up here there was a pile of whining about Govt subsides to Nortel for cell phone switches prior to the dot-com boom by fiscal conservatives. I argued the point that you may as well dissolve the company if you’re not going to support it by this means because you’ll never be able to be competitive against the likes of Lucent, Siemens, MBB, Hitachi, Mitsubishi, GE, 3M et all unless you’re prepared to defend your market position aggressively.

The US doesn’t even pretend to be in the game anymore.

Elaine Meinel Supkis

I remember when Lucent nearly went bankrupt. Several of my neighbors were Lucent executives and they went bankrupt.

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That's so sad. It's a good thing that there were no death involved and only six people were injured. Imagine if this happened in some busy street.. Scary.

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