Monday, October 12, 2009

British Government to the market: "we're not idiots"

Apparently, the British government is selling off it's assets, in order to fund more spending. My favorite quote from the article was this: "Of course we're not going to sell at the bottom of the market ... we're not idiots,".

Notice how cut up the quote is; between not having the audio of the statement and the way that the ellipses and comma are inserted, it would be possible for the official to of said:

"Of course we're not going to sell at the bottom of the market, we plan on selling at a premium price! After all, doing anything less would be stupid; we're not idiots, and we fully plan on getting the taxpayers a huge ROIC."

"Of course we're not going to sell at the bottom of the market, we are going to sell 5% above the bottom." Then, 5 minutes later, on a different subject: "Of course we're not idiots, Hitler was a terrible person, we are not going to invade France."

While early intervention in the markets has proved profitable for the taxpayers (a la' TARP), we should certainly be open to the fact that things may or may not work out as hoped. After all, not long ago, management of Southwest looked brilliant, then stupid, and now appear to be pretty average for their hedging of oil.

Obviously, only time will tell how this move will be viewed.

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