Guvmint Intervention in the Market - Aussie Stock Forums

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  1. #1

    Default Guvmint Intervention in the Market

    It is becomming increasingly obvious that the central guvmint (read krudd) is intent in market intervention to the extent that they (he) will not care if their (his) decisions destroy shareholder value.

    For example...Telstra..... We all know that the left wing (now) guvmint was almost violently opposed to the sale of Telstra. So what do they do when in power...... create another Telstra, that is the NBN. And split the wholesale/retail link in Telstra. This ultimately may well see a decline in the shareholder value (mums, dads & superannuation - ie mums and dads) of Telstra. Optical fibre is indeed the future, with the decline in copper lines, so the guvmint has a golden opportunity here to create their own "New Telstra" and retake control of communications.

    Another area where they are intervening, or should I say controlling, is the ETS. This is going to be a pot of gold for the guvmint, and they cannot keep their grubby little fingers out of the honey pot. Who care about climate change when there is an opportunity to control everything/everyone and make a tidy little tax grab.

    Third area of intervention is likely to be control of executive salaries (which of course everyone know, is totally out of control). That will be something comming out of G20..... no doubt starting with the banks. I am not saying control of these obscene salaries is wrong but should it not be driven by the shareholders and investors? Super funds should be taking the lead in this.

    Any more example that you can think of? And, will this intervention ultimately be successful for central guvmint or will it come back to bite them? Over to you........

  2. #2

    Default Re: Guvmint Intervention in the Market

    Inflation itslelf will also be a tax pot of gold.

  3. #3
    Mmmmmm 2nd breakfast Knobby22's Avatar
    Join Date
    Oct 2004

    Default Re: Guvmint Intervention in the Market

    Yea, so violently against it that they sold the first and second tranches.

    Splitting Telstra to help competion is a right wing policy, not left wing. The libs would have done it if they had had some guts.

    Methinks your political leanings are clouding your judgement.

    And with executive salaries, what's wrong with the shareholders having a say. If Labour pass a law saying shareholder votes are binding, rather than the present system where the directors can ignore them, then I personally would be a lot happier.

  4. #4
    Mod: Call me Dendrobranchiata prawn_86's Avatar
    Join Date
    May 2007
    Los Angeles
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    Default Re: Guvmint Intervention in the Market

    All you need to do to change exec salaries is legislate so that shareholder votes on remuneration are binding.

    How is it that owners of the company can have a non binding vote in how much the management is paid?

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