Wednesday, July 22, 2009
Chek 6 bubble burst
I'm only writing this post because I want to be part of the Google search bonanza AND THAT SHOULD BE THE FIRST CLUE IN AND OF ITSELF!
If you believe that local news is the right of a tax-paying Canadian citizen, sign up here, and get ready to be disappointed, as you already have a dysfunctional news drain on your tax-paying pocket working overtime to save jobs with no tangible results for anyone involved except the taxpayer who pays more for less to support a corporation who made $80M last year on revenues of $1.6B. Now granted, the CBC isn't really meant to make money per se, but one shouldn't be faulted for thinking "rainy day fund" around here should one?
CanWest spent themselves into the graveyard by buying up a whole bunch of poorly performing media assets in a time of declining revenues using cheap debt to do it. You and I and every other taxpayer has already bailed them out to the tune of hundreds of millions of loonies. Do you really want to continue to chase bad money with good?
I liken this analogy as a perfect metaphor for exactly what has occurred in the housing market: cheap credit has fueled a buying frenzy of poorly performing assets. Should the taxpayer have to bail out these fools who spent more than they should have ever been given access to?
This wasn't the first failed media story in Victoria. Nor will it be the last. It's sad, depending on your viewpoint, but it's a harsh lesson in the new media world that old media better hurry up and learn.
Now, when will new home buyers be taught their own harsh lesson in foolish economic practices?