Benjamin touches on the recent news that the law firm Heenan Blaikie LLP will be going out of business. Pointing out that lawyers cannot easily turn down their burn-rate (like brokers can), Benjamin concludes that we are going to see more and more law firms shrinking as the current capital crisis continues in the junior metals & mining space.
In general, all service companies will likely have a hard time staying in business. Lawyers, though, are in for the hardest time, due to the fact that one lawyer can now do the work of ten. As these services companies go out of business, it will be bad not only for the metals & mining industry, but also for the general Canadian economy and its overall ability to survive.
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