Saturday, June 29, 2013
Cost of Zimmerman's Pike Train Wreck Will Exceed $500 Million
Don't know if you've been following the financial markets recently but, according to reports in the Wall Street Journal, New York Times, and elsewhere, the days of easy money that states, cities, and counties can borrow to finance projects like Chris Zimmerman's Pike trolley folly and Jay Fisette's Aquasphere are at an end.
Interest rates are increasing and the bond markets are in steep decline. Bond prices have plunged precipitously in recent weeks sending interest rates soaring. In recent weeks there's been a flood of bond sales.
Hardest hit will be municipalities like Arlington, which are near their debt limits, in Arlington's case because of heavy borrowing for the County Board's and School Board's vanity projects, like Jay Fisette's Aquasphere and new high schools where bond money goes for extravagant sports, entertainment, and recreation facilities. Arlington will have no choice but to pay significantly more to borrow for future necessary public infrastructure, like water and sewer projects, and Chris Zimmerman's vanity Pike streetcar.