Thursday, February 04, 2010

Are some losses gains?

Probably so, but probably not when Mississippi votes to take a bath and sell the State-owned executive jet used to transport Governor Haley Barbour. I'm not necessarily in favor of state executives having executive jet transport, but does it seem a little short-sighted to take a $800,000 loss selling a jet when you only owe $400,000 on it?

With the current jet market, I'm not convinced this would sell for even $2.5m. Consider this: if Mississippi can sell now to gain $2m or keep it five more years and sell for $4m, which is a better choice? (Obviously this is a conjecture and neither alternative is guaranteed; also, I'm not necessarily against private transport for state executives either, and it seems to make sense for Mississippi recently.)

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