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NousDefionsDoc · 07-19-2004, 09:28

Fair? LOL Business is war with a coat and tie.

In capitalism, monopolies are short lived. That is why captialism works mostly.

"Your counterargument hinged on the fact that Halliburton doesn't have any competition anyway, and will therefore not have to exploit manager/govt relationships or other shady practices to maximise profit through monopolisation. However, as monopolies also attempt to prevent de novo firms from entering the market, Halliburton could be consolidating their position to prevent future competition. This is economically more damaging than running rival firms out of the market."

No, it doesn't. My counter-argument is that Halliburton is unique, at this time, with this kind of work and for various other reasons. We ain't making animal crackers here. You don't build up this kind of experise overnight. It takes tools, many of which Halliburton holds patents on. Halliburton has competitors - Schlumberger, Baker Hughes among others. However Schlumberger, again, is Phrench. Baker Hughes doesn't do camps and I doubt (I don't know, I'm guessing) they don't have the capital right now. Also, most companies that size, especially US public companies, are not willing to take that level of risk.

Halliburton consolidates their position on a daily basis, if they didn't, they wouldn't be where they are.

They can't keep other companies from entering the market. I could start up a company tomorrow. But where am I going to get the capital to cover cash flow, transport my heavy equipment, etc.? I'm going to have to try a loan, which means I now have another player in the game for the USG to worry about. One of the main questions you ask is "Does this company have the expertise, money and equipment to fulfill the terms of the contract?" They do, I don't. Now I could get my neighbor's equipment and put it in my yard and show it as my own. I could inflate my capital - but that's illegal.

Capitalism works - the market levels itself. The clients demand satisfaction or they go elsewhere. Look at how many new security companies have started up since 9-11. Some of the good, some ofn them out to make a fast buck. The good ones will stay in business, the bad ones will go away. If Halliburton doesn't perform, all the Dick Cheneys in the world won't be able to keep that contract. Friends get you in the door, they don't get you renewed contracts.

Everything doesn't have to be a competitive open bid. The main reason for bidding a contract is to get the lowest possible price. And that very seldom works in a high risk environment. It does no good to pay a little if the job doesn't get done.

No need to stop Marxist. Feel like you're losing?

07-19-2004, 09:28	#29
NousDefionsDoc Quiet Professional Join Date: Jan 2004 Location: LA Posts: 1,653	Fair? LOL Business is war with a coat and tie. In capitalism, monopolies are short lived. That is why captialism works mostly. "Your counterargument hinged on the fact that Halliburton doesn't have any competition anyway, and will therefore not have to exploit manager/govt relationships or other shady practices to maximise profit through monopolisation. However, as monopolies also attempt to prevent de novo firms from entering the market, Halliburton could be consolidating their position to prevent future competition. This is economically more damaging than running rival firms out of the market." No, it doesn't. My counter-argument is that Halliburton is unique, at this time, with this kind of work and for various other reasons. We ain't making animal crackers here. You don't build up this kind of experise overnight. It takes tools, many of which Halliburton holds patents on. Halliburton has competitors - Schlumberger, Baker Hughes among others. However Schlumberger, again, is Phrench. Baker Hughes doesn't do camps and I doubt (I don't know, I'm guessing) they don't have the capital right now. Also, most companies that size, especially US public companies, are not willing to take that level of risk. Halliburton consolidates their position on a daily basis, if they didn't, they wouldn't be where they are. They can't keep other companies from entering the market. I could start up a company tomorrow. But where am I going to get the capital to cover cash flow, transport my heavy equipment, etc.? I'm going to have to try a loan, which means I now have another player in the game for the USG to worry about. One of the main questions you ask is "Does this company have the expertise, money and equipment to fulfill the terms of the contract?" They do, I don't. Now I could get my neighbor's equipment and put it in my yard and show it as my own. I could inflate my capital - but that's illegal. Capitalism works - the market levels itself. The clients demand satisfaction or they go elsewhere. Look at how many new security companies have started up since 9-11. Some of the good, some ofn them out to make a fast buck. The good ones will stay in business, the bad ones will go away. If Halliburton doesn't perform, all the Dick Cheneys in the world won't be able to keep that contract. Friends get you in the door, they don't get you renewed contracts. Everything doesn't have to be a competitive open bid. The main reason for bidding a contract is to get the lowest possible price. And that very seldom works in a high risk environment. It does no good to pay a little if the job doesn't get done. No need to stop Marxist. Feel like you're losing? __________________ Somewhere a True Believer is training to kill you. He is training with minimal food or water, in austere conditions, training day and night. The only thing clean on him is his weapon and he made his web gear. He doesn't worry about what workout to do - his ruck weighs what it weighs, his runs end when the enemy stops chasing him. This True Believer is not concerned about 'how hard it is;' he knows either he wins or dies. He doesn't go home at 17:00, he is home. He knows only The Cause. Still want to quit?
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