As more states run out of money (California is a current example), do we at CXW benefit from the states' inability to build new institutions (and have to eventually agree to contract out their prison systems) or will we be hurt by the lack of money in that they won't even do the contract work. They get prisoners in any economic condition so i would think they have to cover prisons some how. Thoughts please.
We have to wonder how hard Jerry Brown will fight the appeal as he likely wants the prisoners to be freed anyway. I hope this issue will be brought to light in CXW conference call in a few minutes. Most people will not get to listen as Geithner is coming out with his bank plan that the market is alredy trashing with lower stock prices.
Of concern is the fact that immigration detention is the growth population for this corporation; with fed funds gone missing and new administration, that growth evaporates. Along with corp. profits. Then what?
1) Bad economic times (and this will be a doozy) lead to increased crime
2) States will not/ do not have the money for Capital expenditures to build prisions, they will be forced to send them to private, with capital cost increasing existing facilities will be priced to reflect new very high financing costs
3) Imigration reform is a positive, any solution will be both forgiving and enforcing, there will not be fewer prisoners days there will be more.