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On Mon, Oct 30, 2017 at 3:59 PM, Mick <michaelkintzios@×××××.com> wrote: |
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> On Monday, 30 October 2017 20:50:16 GMT Dale wrote: |
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>> I think we both agree that companies should look long term, it's not |
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>> likely they ever will. Their stock owners would cringe if they did, |
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> |
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> Not really. Pension funds would not cringe at all, but feel relieved they |
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> found a company with clear focus on long term profit sustainability to invest |
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> in. Short term algo-traders skimming the market will of course be displeased. |
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Unless a pension wants to dump a ton of money in one stock that |
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becomes hard to liquidate I'm not sure why they'd be any more attached |
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to the long-term prospects of a stock than anybody else. If they |
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think a stock will go up short-term they can buy it, and then sell it |
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when it no longer looks like it will go up, the same as anybody else. |
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Lots of institutions have money they will be investing a long time, |
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and yet they still vote for boards that are short-sighted. |
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>> the |
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>> Govt types are going to get in the way if they can, regulate it to death |
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>> if nothing else, and here we sit. |
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> |
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> Regulation is the 'fix' governments have come up with to address market |
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> failures, oligopolistic cartels and lack of true competition, instead of |
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> admitting the obvious: natural monopolies like most public utilities are not |
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> a good fit for privatisation, if the public good and tax payers' interests |
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> count for anything these days. |
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Well, it depends on what your privatize. There is nothing wrong with |
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the government hiring other companies to provide services, just as |
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there isn't anything wrong with one business outsourcing work to |
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others. |
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The problem is when people think of privatization as a panacea and |
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just do it wholesale in a natural monopoly without any kind of |
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structure to ensure that companies have incentives to provide good |
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service/etc. |
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Often there are elements of a traditionally public service that aren't |
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natural monopolies which can be outsourced for a benefit. Electrical |
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generation is often a case of that, but as I suggested you do need to |
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ensure you're paying to have extra capacity online. |
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-- |
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Rich |
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