Re: Privatization is the answer

Posted by bobbapink on Jan 16, 2002 at 15:34 (

Re: Privatization is the answer (DA Morgan)

Nonsense. Take a good look at corporate structures in the US and around the world. No corporation manages its resources for the long-term.

I disagree. Perhaps you could provide a few examples of a corporation mismanaging a natural resource they personally own and for which they are personally responsible in a legal sense.

Governments do occassionally (for example trying to stretch out revenues from natural resources) but not corporations.

The problem of course is the "occasionally". Whereas governments do so only occasionally, individuals do so as a general rule. Which is not to say that a particular individual would not mismanage a resource, only that it is most often (rather than occasionally) not in his or her best interest to do so.

All that matters is the next quarter's P/L statement.

That is incorrect but as far as that goes, all that matters to the politician is the next voting cycle and the amount of the next bribe.

And that is not necessarily wrong from the standpoint of the corporation and its stockholders.

It most generally is wrong from both standpoints.

Management has a fiduciary duty to do this. However that fiduciary duty does not extend to the product ... or the customer.

The duty extends to both when the source of the profit derives from both.

You talk the talk. But reality does not walk the walk. If a good look at the NYSE, NASDAQ, and SP are any judge.

Sure it does. Privatization is the answer.

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