I think Rudd is making a graceful exit away from the whole NBN broadband thing. I believe after doing the feasibility study in Tassie, the govt will pull the rug from this project.
By then they should have scared the sh1ts out of TLS, pushed through new thoughts on regulation onto TLS.
Think about what he might have done instead yesterday. Say Conroy was wrong in this whole NBN fiasco, and him by extension? Of course not! So yesterday he created another distraction with FTP while shoving the regulation envelope and will eventually pull the the NBN thing altogether.
As for financing, I think government bonds is a bad idea. It will suck credit from the private sector, I mean look at these real estate trusts. They are already struggling with foreign banks pulling out. Imagine what will happen if the government borrows a further 10-20 billion from the economy? Sure recipe for "crowding out" private investment in other things this country needs.
I am calling Rudd's bluff on this one.
PS- I sold yesterday, will buy once the regulatory challenges become a bit clearer.
TLS Price at posting:
$3.35 Sentiment: Buy Disclosure: Not Held
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