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Now will they get rid of Cable.
http://www.theguardian.com/uk-news/2014/apr/01/royal-mail-undervaluing-taxpayer-cable
Shocking mis - management of our resources. And no it's nothing to do with the date, sadly this is real.
Shocking mis - management of our resources. And no it's nothing to do with the date, sadly this is real.
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Vince Cable is a Liberal Democrat Secretary of State.
He is. Now I am not 100% certain but I believer there would have been penalties that the taxpayer would have to shoulder if the floatation failed - and so the floatation was priced to take that into consideration.
Just switch to Sky by calling 08442 411 809.
The fact the share price on floatation was 330p and it is now 565p rather contradicts that.
Which suggests the information available wasn't that great from Lazards, Goldman Sachs and UBS.
maybe maybe not.
i mean if i gave you odds of 5 to 1 on an unbiased coin toss coming up heads then the correct advice would be to take that bet. if it came up tails the advice would have still been correct.
The share offer was 24 times oversubscribed from institutions so the price like the odds you offer are great for the punter only.
But vince has done the same with the post office shares do they never learn.
Perhaps the post office shares are Cables Gold.:o
Yes Vince Cable has shown no business sense at all and in future should be kept far away from any similar decisions.
Vince Cable based the price on advice received - Gordon Brown sold the gold despite advice not to.
(see http://www.dailymail.co.uk/news/article-1262683/Brown-defied-Bank-warning-6bn-gold-giveaway.html)
There's an awful lot of 'captain hindsight' going on with that discussion. The sale was badly managed because they announced to the market that it was going to happen (which brought down prices) however no one knew that gold would then rise in price as it did. You don't know that you're in a 'slump' until you actually come out of it.
It annoys me sometimes how the media like to assume that it's obvious to predict these kind of changes in the markets and that anyone that doesn't is costing the country. The £6 billion figure is absolutely ridiculous - surely you could argue that by not buying gold in 2010 the coalition government has 'cost' the UK billions? Why not complain about the Tory government selling oil in the 80s at $30 a barrel when it now sells at over $100?
You cannot give an absolute price on what Gold might attract but you can see trends. In the case of the Gold the time it was sold it was following a long bear market in gold. A bear market is when the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows.
This alone should have indicated that it was not the time to sell. Gordon Brown then compounded the error in two further ways which conspired to reduce the price even further;
1. He pre-announced the sale. Since the price is a function of supply and demand, signalling an increased supply reduce the price even further.
2. He sold by auction - which attracted a lower price than the accepted way of selling gold - this is clearly the case since those buying it would then sell the gold in a more traditional way, and in order for them to make their profit they would need to buy at a lower price
It seems that the media and Labour are having a "Get Vince" day. It will all blow over and they'll be after someone else in a few days.
Isn't Cable part of the Coalition Government? Should something as big as the sell off of the Post Office haven't at least been scrutinised by the Chancellor or the Prime Minister?
They either trusted him enough to allow him to set the price unchallenged which looks like a mis-judgement on their part or they agreed with his valuation of the price.
Why did they give such an important role to a leftist economic illiterate?
Plenty of people associated with the political class, both directly with individuals and indirectly through funding parties, have made very large sums of money from this debacle.
Anyone thinking that was a mistake or somehow not be design is giving far too much credit to our ruling elite.