Wednesday, May 18, 2011

Fred Fearless:comment of the day

Sycophancy from Nick Dalton at The Journal of Ignorance with an excellent riposte from Fred Fearless!

Some 99 years ago, the SS Titanic, the largest passenger vessel built to date, which some believed
unsinkable, sailed on her maiden voyage across an iceberg strewn North Atlantic. On Sunday, 14th
April, 1912, the vessel ignored radio calls from other vessels warning it of icebergs, including
calls from the SS Californian which perceived the risk of icebergs too great, and adopted a risk
adverse strategy of stopping for the night. The Titanic continued at high speed to collide with an
iceberg, resulting in the loss of the vessel and over 1,500 lives. Most lives were loss due to the
shortage of lifeboat capacity, as the head of the shipping line had ordered the number of lifeboats
in the original design be reduced from 48 to just 16, the absolute minimum then allowed. Having
chosen to place the vessel and lives in danger, should the shipping line blame the iceberg for the
disaster? In wanting to be the biggest, CEC chose to depart from the “previous risk adverse
strategy” and allowed liabilities to spiral to $147 million by June 2007. Despite repaying some $100
million to the CBA, the liabilities are still almost $135 million as at December, 2010, a reduction
of only $12 million. Since listing, they have made a total net loss of over $90 million, despite
using their creditors’ money interest and repayment free.
CEC blaming the bank is like the Titanic blaming the iceberg.

Posted by: Fred Fearless   8:58am today
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