You have remarkable insight into this business. Castigated though he may be, Doc Crants saw this three years ago. CCA had followed a bricks and mortar strategy. WHC had not. CCA's margins were twice those of WHC. Doc knew that managing prisons was a shrinking margin game, but financing (building) them was potentially huge: voila! the REIT. WHC played catch up all the way. The real pot of gold at the end of Doc's rainbow was not privatization, but replacing the aging public infrastructure. We used to joke here about "today prisons, tomorrow roads and bridges." I believe it is still true that private companies can build prisons in one-half to one-fourth the time it takes the public sector (with union contractors) and at about half the cost.