In the wake of the ABC Childcare share plummet, I have observed some Blogs and comments by the public on Emminent Newspaper websites like the Courier Mail. The public reaction has on the whole been something between glee and vindictive glee at the amount of money the Groves' have lost.
How typical.
Some people are suggesting that we have the Government run all Childcare. Why is that the Governments job? And we are supposed to think they'd do it well? Like Hospitals hey? Brilliant idea. They provide subsidies for low income earners, they regulate the industry to protect kids and workers, lets leave it at that. Childcare is provided by a businesses. Businesses need to make a profit. ABC is LISTED, so it needs to perform for it's shareholders too - which include Mums and Dad's directly and through Superannuation and other managed investments. Someone else suggested capping the allowable profits. Nice precedent. Really thought that one through.
This is a MASSIVE over-reaction by a jittery market. Look at the business fundamantals. Demand exceeds supply. Strong growth. In an enviroment with rising interest rates and more financial pressure on families, MORE people need to return to work, which will drive demand for childcare.
I'd like to buy ABC shares like crazy. They're a bargain, and Eddie Groves has been badly hurt by the financial press looking for a sensationalist new disaster story now that MFS is old news.
And Brisbanites love to beat up a local success story. It's sick.
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I think that you make a good point about the vindictive glee of the media.
That is because it is like Enron or the financial meltdowns of Bond Inc in the 80's.
Eddie Grove is most likely guilty of insider trading, and he deserves to be charged. Some places of the market need to be handled in certain ways for the good of everyone. I'm no bolshie, but I think that the glee you see comes from a sense of poetic irony that someone so arrogant and indifferent to the important role of his centres and the millions of childrens lives is something that can be gambled on the stock market. It may be the way of the world, but Kevin Rudd euphoria tells me that it doesn't.
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