Justice Department says it will end use of private prisons (1 Viewer)

[Jeff Miller]

"corrective services" lol, thats funny

 

[coldseat]

There is no comparison to the private prison industry and the NRA.

The NRA can get votes out. the political muscle it flexed in the 90s is not achievable today, but it still can turnout votes.

Private prison industry can basically just lobby. No comparison.

The comparison is just that they'll fight this like the NRA fights proposed gun control laws. The difference that you mentioned is understood and was noted, though you stated it better here.

 

[WhoDatPhan78]

I read that this announcement affects about 11% of their business line.

So by the metric, the stock is now oversold.

Yea, people with money to play with can usually profit from overreactions on days like this. At least it's an overreaction in the nearterm.

Even if the feds start to unravel private prisons, it's going to be a years long process.

 

[superchuck500]

Yea, people with money to play with can usually profit from overreactions on days like this. At least it's an overreaction in the nearterm.

Even if the feds start to unravel private prisons, it's going to be a years long process.

I suppose the concern is whether states will follow the lead. If that begins to happen, the company could face that kind of real devaluation. And the market tries to get ahead of those events.

But seems like it could be a near-term value.

 

[Bayouboy]

If we could get the states to follow suit and legalize (and tax) marijuana, we could improve the lives of minorities and balance the budget!!!

 

[LOONEY]

I read that this announcement affects about 11% of their business line.

So by the metric, the stock is now oversold.

something is up with this i was just watching FBN and their stock is now moving up.

 

[superchuck500]

something is up with this i was just watching FBN and their stock is now moving up.

Most likely because yesterday was an overreaction. People looking for values overnight identified this one.

 

[saintfan-n-alex]

If we could get the states to follow suit and legalize (and tax) marijuana, we could improve the lives of minorities and balance the budget!!!

Down side of that theory is legalized or not businesses can still drug test and not hire for failed tests - people will have to understand that and not confuse the two like people do the 1st amendment

 

[superchuck500]

Down side of that theory is legalized or not businesses can still drug test and not hire for failed tests - people will have to understand that and not confuse the two like people do the 1st amendment

I don't think that's a downside. It's just a collateral issue that goes along with it.

 

[LOONEY]

Most likely because yesterday was an overreaction. People looking for values overnight identified this one.

True , im not sure how many state and local areas use private companies to run there prisons.

 

[CountWhoDat]

They make sense from a certain perspective of operational efficiency. Private enterprise is just better at doing many things than government - especially at scale.

Agreed. There are certain things that work better when they are "run like a business" or, more appropriately, as a business. As much as I disagree with the commonly parroted idea of "running government like a business", there are some government functions that can be effectively farmed out to private enterprise if it improves the service and saves money.

Prison is not one of these. There is now a perverse "profit motive" in drug enforcement - to appropriate property through criminal and civil asset forfeiture - and having prison beds that need filling only adds fuel to that fire.

Obama's DOJ has been very slow and incremental in their progress away from this hardcore "law and order" mentality, but its certainly better than increased enforcement, which they undertook against medical marijuana purveyors early in his term with impunity.

 

[Jackavelli]

Does anybody know how many prisons will remain private if federal does not renew any contracts ?

 

[saintfan-n-alex]

I don't think that's a downside. It's just a collateral issue that goes along with it.

Another way of stating it yes

 

[superchuck500]

Does anybody know how many prisons will remain private if federal does not renew any contracts ?

Eventually none, at lease if you're referring to mainline BOP prisons. The contracts will be allowed to expire without renewal. I'm not sure what the windout period is.

Of course, there could be a policy change in the interim that would change the course and provide for renewal.

 

[insidejob]

I think "phase out using" would've a bit more accurate (I know the article said "end")

It needs to happen - there should be no profit motive to imprison people

seriously...

/thread