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To: XJarhead

However you choose to state this matter, the bottom line is that the free market will decide the value of the ports issue. No matter how you run your business, the market puts a value on it, case closed. I dont understand why so many on FR dont seem to want to trust the market.


116 posted on 03/11/2006 2:54:11 AM PST by son of caesar
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To: son of caesar
No matter how you run your business, the market puts a value on it, case closed.

What you don't seem to grasp is that the government has intervened, and therefore distorted, that market you claim is so free.

The "free market" result was that DPW bought the terminal operations. Everything that has happened since is the result of government action, and therefore not "free market". That government fiat has now reduced the pool of potential buyers, which deflates the price. That's freshman economics. If I sell my home, but there is a covenant that permits it to be owned only by red-haired dwarfs, I'm going to make less on that sale than if it was open. Here, we've basically barred most international terminal operators from bidding on this deal. That lowers the expected sale price from what the free market result would have been.

I dont understand why so many on FR dont seem to want to trust the market.

The "market" result had DPW running those terminals. Seems to me like it was the folks who opposed that deal who didn't want to trust the market, not the other way around.

117 posted on 03/11/2006 8:54:13 AM PST by XJarhead
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To: son of caesar

Why are you assuming DPW won't incur any loss? Limits have been placed on who they can sell a portion of their business to. Not only have the limits been placed but they're being forced to sell.

The market will put a value on it but will it be a value equal to what they paid for this portion of the business? You can call the case closed all you want but in reality it's not a closed matter. DPW purchased the complete package deal in good faith thinking they had the appropriate approval to be able to operate the portion of the business located stateside.

When you say you don't understand why so many on FR don't seem to want to trust the market, you're exhibiting your ignorance about how the markey can conceivably operate in this particular instance.

Have we given DPW any leeway? Will we allow them to operate the facilities located on American soil until such time as they can locate a buyer who's willing to give them true value? Or have we in effect created a situation where DPW must sell in a manner tatamount to a fire sale?

Do you really think the market now is as attractive as it was when DPW bought P&O? I would suggest the market is nowhere near as attractive and any losses incurred by DPW would be our responsibility since we placed conditions upon DPW after they had been approved.

I hope I'm wrong and DPW can find a purchaser willing to pay them sufficient monies to where this doesn't come back to haunt the taxpayers.


120 posted on 03/11/2006 12:12:07 PM PST by Sally'sConcerns (I never knew there were so many union supporters on FR.)
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