Matthew Yglesias succinctly explains the problem with privatization. "There really are certain pathologies associated with government work. When money is allocated by a political process rather than a market process it tends to be allocated less efficiently. The trouble with privatization as a remedy to this problem is that it . . . doesn't remedy the problem, the money is still being allocated by a political process."
Bingo. I have long thought of most privatization schemes as bogus, Yglesias explains why without even breaking a sweat.