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| Re: Daily News Demagogic Fare Hike Piece (538089) | |||
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Re: Daily News Demagogic Fare Hike Piece |
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Posted by Russ on Fri Dec 21 13:42:57 2007, in response to Re: Daily News Demagogic Fare Hike Piece, posted by RonInBayside on Fri Dec 21 13:23:52 2007. I don't know how the existing bonds are valued by the market, but I doubt that with the current subprime crisis that the MTA can pull off a refinancing scheme.For existing debt service - which is about to increase, it simply has to paid off. For future bond issues, I'd hold back when times are good from major capital projects that can be deferred, and borrow when interest rates are lower. The MTA would also get construction projects executed for far less than for what they are currently paying in the middle of a global construction boom. The problem with this is that it requires a level of fiscal discipline that does not seem viable when subjected to demagogic populism. The MTA would really needs to be able to build somewhat of a rainy day fund to cover debt service during an economic slowdown, and then when the economy picks up, increased revenue will pay off the bonds. This is a spin on Keynesism, but it seems to me to be the best route. |
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