Sunk costs laddie, sunk costs

There's an aspect of accountancy (for it is that, not economics) which all too many people manage not to get. Sunk costs I'm talking about.

"In just three years the estimated cost for dealing with our nuclear legacy has risen by over £20bn," said Greenpeace's senior nuclear campaigner, Ben Ayliffe. "It now stands at over £73bn and is spiralling out of control. The NDA admits that they have no idea what the final bill will be.

"They're stuck in a radioactive quagmire and as usual it's the public who will have to carry the can. It beggars belief...

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There will be screaming and anguish about this

Mark my words:

Benefit claimants will have to take part in a new "work for dole" plan as part of a package of welfare reforms to be unveiled next week that will aim to get millions back to work.

Aren't we horrible people? Insisting that people don't simply sit on benefits but get up and do something in return for society's support of them?

Must be some horrible right wing idea, yes?

The "work for dole" programme is an idea borrowed from America.

Ooooh, yes, and it's American. My how the Guardianistas will curse it...

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Billions for Barclays

Barclays announced this morning that shareholders took up almost 20 per cent of new shares as it raised £4.5 billion to top up its coffers. I'm torn as to whether this is good news. Should we be worried that shareholders showed so little interest? Or should we rejoice that any of them took the shares at all – could this be a vote of confidence in the market for once?

Incidentally the three-and-a-bit billion pounds that was left over was snapped up by "anchor" investors in Qatar, Japan and elsewhere, no doubt...

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Bloomberg datapoint of the day

Back in 1985, investment-banking powerhouse Merrill Lynch bought a 30% stake in Bloomberg LP for $30 million. A few years later, Bloomberg bought back a 10% stake for $200 million, leaving Merrill with 20% -- which it's now selling, again to Bloomberg, for $4.5 billion.

Because of its financial duress, Merrill sold its stake at a discount, these people said. John A. Thain, Merrill's chief executive, valued the Bloomberg stake at $5 billion to $6 billion when he spoke at a conference last month.

Since there were no other bidders, and since this...

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