Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Tea Party Terrorist

I believe if you do the math, to make a $100 million paving job work...you’d have to figure in an extra $5 millon on top of the bond pay-back....because of your rating. Maybe it doesn’t matter to most folks in Illinois...but it means every single infrastructure job that you fund via bonds...means more taxes down the line in some fashion. Either you the business owner gets hit, or you the wealthy property owner, or you the company with a thousand employees.

The question I have...how would you ever get out of such a mess? If you chase your business operations off to Texas, and they won’t return...you end up looking like Paraguay in ten years...a third-world state.


6 posted on 01/26/2013 10:02:21 AM PST by pepsionice
[ Post Reply | Private Reply | To 4 | View Replies ]


To: pepsionice

“you end up looking like Paraguay in ten years...a third-world state.”

If you’ve seen some pics of the sleazier inner city of Chicago..you’ll agree that city is almost there now. I just wish the downstate conservatives had more of a voice.


15 posted on 01/26/2013 10:48:54 AM PST by austinaero
[ Post Reply | Private Reply | To 6 | View Replies ]

To: pepsionice
you end up looking like Paraguay in ten years...a third-world state.

Or. Central California.

20 posted on 01/26/2013 11:28:26 AM PST by MarMema
[ Post Reply | Private Reply | To 6 | View Replies ]

To: pepsionice
I believe if you do the math, to make a $100 million paving job work...you’d have to figure in an extra $5 millon on top of the bond pay-back....because of your rating.

If the state constitution specified that, outside a few specific situations, the state or subdivisions thereof would always be free to default on debt with no recourse for the creditor except for specific property which was named as collateral for the debt, certain types of credit would have cost more but the state would be in much better financial shape. If a city needs to build a school, for example, and needs to borrow money to pay half the cost, creditors would face the risk that if the value of the building to the city's taxpayers were to fall below the value of the outstanding debt, they might be left having to try to salvage what value they they could from the building, likely taking a loss. Creditors wouldn't let the city borrow money in ways that would be overly detrimental to future taxpayers, since the risk inherent in such lending would exceed any possible payoff (the higher the interest rate, the greater the risk of default).

24 posted on 01/26/2013 4:19:51 PM PST by supercat (Renounce Covetousness.)
[ Post Reply | Private Reply | To 6 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson