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Just because a business is losing money, doesn't mean it has zero value. Paul Collier, author of the "Bottom Billion", said poor countries get screwed for thei
by entangld 16y ago
Just because a business is losing money, doesn't mean it has zero value.
Paul Collier, author of the "Bottom Billion", said poor countries get screwed for their resources because they don't put them up to bid. He even said the British government valued certain frequencies at 2 billion, but they later sold for 20 billion during bidding, so it's better for all governments to auction assets instead of pricing them or giving them away.
- TomOfTTB 16y agoTrue. And they should certainly try to get some money for their assets (and they haven't said they won't). But the point still remains. If you're actively losing money on an investment and selling it for zero is your only option it's still better to sell it for zero than to hold on to it.
- jbooth 16y agoYou might want to look at the Russian privatization of the early 1990s for an example of exactly how not to do this. Unfortunately, Walker seems to think that experience is an instruction manual.