I wasn’t confused or surprised because I applied the well know PI factor to the original estimate.
Whenever Govt gives any costs for a major project multiply by PI and you wont be far off the final cost.
So, if the costs of the olympics have doubled this means there is still a long way to go before we get the final bill.
Ian Bennett
So they didn’t increase the budget, they just added more costs to it? And the difference is?
Matthew
I’d have thought you’d be a the ‘market knows the ‘correct’ level of interest rates better than the State’ person?
Tim adds:Possibly, but given that the State actually sets the basic level of interest rates, this won’t happen, will it? LIBOR is showing the market’s rate “above ” that basic rate.
I wasn’t confused or surprised because I applied the well know PI factor to the original estimate.
Whenever Govt gives any costs for a major project multiply by PI and you wont be far off the final cost.
So, if the costs of the olympics have doubled this means there is still a long way to go before we get the final bill.
So they didn’t increase the budget, they just added more costs to it? And the difference is?
I’d have thought you’d be a the ‘market knows the ‘correct’ level of interest rates better than the State’ person?
Tim adds:Possibly, but given that the State actually sets the basic level of interest rates, this won’t happen, will it? LIBOR is showing the market’s rate “above ” that basic rate.