Comments on: And inevitably…

By: Grezz

Grezz — Sun, 06 Nov 2011 23:45:56 +0000

In reply to ciccio2011. Imma l-erkondixins ha jhalluhom imwahhlin f'kull kamra, ta.

By: ciccio2011

ciccio2011 — Sun, 06 Nov 2011 22:38:04 +0000

In reply to Grezz. In 2013, we might witness carcades of ecstatic Labour supporters driving around with their photovoltaic panels or solar water heaters trailing behind. It would be worth watching.

By: Grezz

Grezz — Sun, 06 Nov 2011 21:26:41 +0000

It reminds me of when Alfred Sant continually told people that, if elected, he will remove VAT.

What he didn’t say was that he would be replacing it with CET.

Does anyone remember the news footage of people celebrating his electon to government in 1996 with the destruction of their “fiscal” cash registers?

By: silvio

silvio — Sun, 06 Nov 2011 21:05:06 +0000

In reply to hopeful. No, but you can fool some of the people some of the time, and that could be enough.

By: silvio

silvio — Sun, 06 Nov 2011 20:59:12 +0000

Excuse this little question.

If you are supposed to be working at your desk,how come you are following this blog?

I hope you are your own boss, otherwise you might be in trouble with your boss.

Of course I expect a silly answer to my silly question, just to end the weekend on a light tune.

By: Lomax

Lomax — Sun, 06 Nov 2011 18:11:42 +0000

“If they want a new look, how about a pair of mickey-mouse ears next time? They’d do the job.”

I’m at my desk, on my own in a deserted office and laughing my head off! Thank you for making this Sunday afternoon so amusing (even though I have to work).

I will laugh all the way till this evening on just this comment.

By: ta' sapienza

ta' sapienza — Sun, 06 Nov 2011 17:07:53 +0000

http://www.youtube.com/watch?v=38qhMRPAD9U

By: hopeful

hopeful — Sun, 06 Nov 2011 15:46:08 +0000

I have heard it before: You just cannot fool all the people all the time.

By: Neil Dent

Neil Dent — Sun, 06 Nov 2011 15:42:13 +0000

Thanks to similar reasoning to that of Dr. Muscat today, dozens (hundreds?) of Labour-leaning business people decided to chain their ‘fiscalcashregissssterrrzz’ to the back of their car back in 1996.

Saddest part?

His supporters are absolutely FINE with his ‘wait and see’ strategy (i.e. no strategy whatsoever), even if it truthfully does mean them having to pay over the odds for water & electricity in the interim.

It’s truly unbelievable.

By: The Planner

The Planner — Sun, 06 Nov 2011 15:34:53 +0000

So on the one hand Dr. Muscat says he has “clear” plans, and on the other he says he will not reveal those plans because things may change due to the uncertainty in external factors.

In substance, this means that he has no plan at all.

A plan must cater for uncertainties, identifying them, quantifying them (using probabilities, sensitivity analysis) and then include measures to counter them.

Otherwise, it is only an amateurish plan, which to be frank, is what we can expect from Labour at best.

Dr. Muscat had already said that one way to reduce the tariffs is to reduce a factor in the computation formula, called the discount rate.

Now any financial advisor worth his salt will tell you that the discount rate is the measure of financial sustainability of any calculation it underlies.

So if Dr. Muscat arbitrarily lowers that rate to reduce the tariffs, he will only be creating financial problems to the enterprise that generates and distributes the electricity, putting at risk the sustainability of Enemalta or any other supplier.

He will also put at risk the international financing of Enemalta, because creditors will only risk their money with Enemalta if they know it can recover the investments sustainably.

And this would only lead to upward pressures on the discount rate!