Leeham News and Analysis

Pontifications: Talk about government interference in private industry; book review of United “Flight 232”

• There are many topics on which to comment, n one of which requiring a full Pontification, so today’s column is going to be a bit of a free association.

By Scott Hamilton

August 10, 2015, (c) Leeham Co. Government interference: While right wing Republicans and Tea Party members decry supposed ExIm Bank interference with private industry, there is now a bill in Congress to sell millions of barrels of oil from the USA’s Strategic Oil Reserve in order to raise $15bn.

Unlike the ExIm Bank’s participation in the global capital markets, Congress’s action–if it passes–won’t create  jobs. It will compete with jobs and companies trying to sell oil in the global market place. It will help drive prices down.

Once more, the hypocrisy of Congress is glaringly evident.

Bombardier: Pierre Beaudoin should have left Bombardier last February when he relinquished the title of president and CEO to Alain Bellemare instead of assuming the chairman’s title. This is the opinion of a few people with whom I’ve talked just in the last week.

Furthermore, the Beaudoin family needs to step out of the company entirely and give up its voting control (it has 54% of the voting stock) if BBD wants to attract new investors, says one Canadian aerospace analyst who hasn’t written any of this publicly.

“I can’t even see how they’re going to raise money for BT. I can’t imagine European investors would like subordinate shares either. Equity markets won’t be supportive unless the Family gives up control,” this analyst wrote me.

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