After Gold, is Water the Brown Bottom II?

The billions lost by Brown’s decision to sell Britain’s gold reserves are mounting as gold prices have more than quadrupled since his decision.  He has the reverse midas touch when it comes to market timing.  This chart shows what is known in the gold market as “Brown’s Bottom”:

Now far be it from Guido to oppose a privatisation, but he seems intent on doing for water what he has done for gold. Gordon wants to sell the British Waterways’ property portfolio in a £16 billion asset fire sale. Obviously this is prime development land with waterside views. However we are in the midst of a property slump:

Selling development land now is just plain stupid because it is too cheap.  Essentially Gordon is so desperate to raise capital it seems he is willing to sell at any price, even if it is a crap deal for the taxpayer.   If you are going to do asset sales, you don’t sell assets with depressed prices.

mdi-timer November 27 2009 @ 11:45 mdi-share-variant mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-printer
Home Page Next Story