Timmy elsewhereJuly 12, 2011 Tim WorstallTimmy Elsewhere9 CommentsWhat Southern Cross tells us about privatising public services. previousGet your Green Eco House Here!nextNot sure about this 9 thoughts on “Timmy elsewhere” john miller July 12, 2011 at 8:19 pm And, given the congruence of an organisation full of dozy old people who have a flimsy grasp of reality and no clue as to what the young people are doing, did you not add banks to your list? John77 July 12, 2011 at 8:31 pm The big losers are the (a) investors who bought shares and (b) self-funding residents who are subsidising state-funded residents – the big winners are (i) the management who cashed in at unrealistic prices (and who would have gone to jail for that in the inter-war period) and (ii) local authorities who used their monopsonist power to place residents at well below cost as long as it was just above marginal cost. The message is “caveat vendor” to anyone selling services to the state. I should also like the FSA to investigate *everyone* concerned with the over-priced flotation and/or the share sales by the executives. Arnald July 12, 2011 at 9:08 pm So having these homes run out of unaccountable and secret companies is a good thing? Jesus wept. This is utterly contemptible even for you timothy. lost_nurse July 12, 2011 at 9:24 pm Best laugh I’ve had all day. Oh, you were being serious? Serf July 13, 2011 at 8:06 am Arnald The fact that they went belly up is proof that they are accountable. Arnald July 13, 2011 at 10:05 am Serf What? The landlords based in secrecy jurisdicitions? lost_nurse July 13, 2011 at 1:57 pm The fact that they went belly up is proof that they are accountable. The belly-laughs just don’t stop, do they? Any more feeble-minded justifications for this particular clusterfcuk, or are we all done? I’ll be bringing it up at the next ward meeting, for sure: “Boss, the way to make us more accountable, competitive and efficient is to be asset-stripped by a bunch of PE bully boys who operate a business model that is unsustainable at best (and, imo, plain criminal at worst). It will do wonders for A+E – just look at how the pay of care assistants shot up under Blackstone!” The care homes still exist, the elderly residents are still in residence. The staff are unchanged Too right. Just the other day I pulled off a major bank heist – but it’s ok, because the actual building is still standing, the customers still have accounts there and the counter-staff remain unchanged. john b July 14, 2011 at 7:50 am Lost_nurse: In the example of the bank job, there was a transfer of wealth from the bank to the robber. In the example of Southern Cross, the transfer went the other way: the shareholders and banks lost all their money, benefiting some combination of the landlords, the staff and the residents (if the company can’t make a profit, definitionally it’s either paying too much or charging too little). lost_nurse July 14, 2011 at 9:45 pm the transfer went the other way I’m aware of who got burned in the final reckoning… all the same, it’s absurd to hold up Southern Cross as an example of accountability (and to pretend that such antics have no bearing on service provision – “the care homes still exist” etc)! Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.