Two articles in the NY Times business section:
I like to tweak those who dis the government. Seriously, I think the key thing is change. Mr. Miller at Treasury is new blood, who left Goldman to serve the public, which apparently he has done quite well. While government bureaucracies can become hide-bound, the periodic shakeups which often arise from elections counter that effect. Meanwhile, theoretically private enterprise is subject to the discipline of the market. A loss of a billion isn't going to be serious for Intel's managers, although it may be for the person who oversaw the chip development. I doubt that competition is that much of a factor here--Intel seems to have had market dominance for many years. Instead, publicity is going to be the disciplinary factor: Intel couldn't really keep the problem hidden. And that publicity may redound on the stock price.
No comments:
Post a Comment