Sunday, June 7, 2009

Disingenuous disinvestment

Here is Montek Singh Ahluwalia, a conservative economist, trying to do work in a populist, socialist govt. I would have preferred him as the FM, but the intentions of the govt are very clear in putting a left leaning Pranab Mukherjee as FM. Now back to the planning commission in his second stint deputy chairman, he is willing to set a plan to get deficit down and get govt out of the public sector, but clearly is setting limits and caveats on all.

Now Montek in an interview with CNN IBN has indicated even with disinvestment, govt control of 51% will exist. Why? Frankly I dont want my money going to running public sector companies, however navrathan they may be. Please give me a reason why my money needs to go into making watches or soaps? If I believed in a story I will take equity and invest. I dont think these symbolic lip service attempts at disinvestment is going to help.

Poor audio

Listen to Jim Cramer's opinion on GM. I can draw a parellel with our continued clinging to the public sector units. Government should be out of doing business with tax payer money. No good has ever come out of this, especially in mature sectors. They should only be regulators. The eagerness to jump into everything even if there isnt a systemic risk is too much for fallible human beings running the govt.

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