Stan,
One thing is for sure here in France. Never buy a stock of any company when it's widely encouraged by the French State owned TV, Media and so forth...
These fine politicals guys (actually not worth a penny [see their results on the French economy]) advertised heavily for 2 companies Euro-Tunnel and Euro-Disney... One (Euro-Tunnel) was a true start-up from nowhere heavily stuffed with high flying & ranking bureaucrats (friends of the political elite here which is quite a small boys club), with no previous experience of such a business... Guess what happened ? In order to get the contracts, Infrastructure and Equipments building company grossly underevaluate the work and the associated cost... They just keep asking for more funds and delays... the originally signed contracts didn't protect Euro-Tunnel at all (of course). However the Political did quite well, since here in France these Infrastructures and heavy work building companies are known for financing a big chunck (illegaly) of the political parties and elected representatives. In fact all the profits were here... The dumb public paid the bill...
For Euro-Disney it's almost quite the same. Disney knew that they could put anything in the contractual obligations of this partly owned company, the French government and political power didn't care, as long as they got the Euro-Disney park in France (not in Spain, which should have make more sense ?). Mainly because the same French buiding companies would get the job, and will later pass on to them, their parties, a lot of cash (illegaly). If you had seen these contractual obligations you would have lough and ask you when if it ever happens Euro-Disney will make a substancial profit (I mean in-line with Disney parks elsewhere) ? I read the stuf in The Economist (a good independant weekly, available in US & Canada too)... They have so much of royalties to pay to Disney, that profits will always remain a dream.
However, the French political elite did well on both accounts... May be that's why right now they are leaning toward socialist policies...
I believe it's a gang. Had they done the same in the US they would be right now behind bars. Well, they are not of course... |
