A Jackass, his PAL(indrome), and GOLD Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : A Jackass, his PAL(indrome), and GOLD

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: SOROS who started this subject	1/15/2003 3:34:10 PM
From: tonka552000	Read Replies (1) of 1210

Here in Virginia we have two problems: deficits at the State level and at the County Level...VA faces close to $2B...Fairfax (one of the country's richest counties) is facing major cutbacks to break even...all in all taxes going up, services will decline... Subway (Metro) requested fare increases; Fairfax County Water Authority requested rate increases, Washington Gas -- ouch... Interesting read: washingtonpost.com ...The states are also on the hook for runaway Medicaid costs and for more than a few boondoggles conceived during the boom years of the late 1990s. But a deeper, structural deficit is also at work -- driven by demography and changes in the world economy -- that will continue eroding the finances of state and local governments even if boom times return. Unless this deficit is closed, state and local governments will wither, and more governmental power will likely wind up concentrated in Washington.......In the future, two additional trends will further erode the ability of state and local tax revenues to keep up with the cost of government: the aging of the population and the growth of e-commerce..... And this: richmondtimesdispatch.com In the 2000s, weirdness will be encountered in transactions that cannot easily be explained or understood by the average citizen. The use of interest rate swaps and other derivatives will feature prominently. As an example, I give you the transaction with no underwriting fee, or "spread," as it is called. Not too long ago, it used to cost $22 for every $1,000 of bonds an issuer wanted to sell. That cost has come down to where it is now around $6 or $7. The reasons are many. Cutthroat competition probably covers them all. What could be better than no fee at all? What could be better than paying for the costs upfront with an option to do a swap at some future point in time? What could be better than being asked by some regulator examining the transaction in an audit: "By the way, did you ever wonder how the underwriter was getting paid?" And not knowing the answer. Call me old-fashioned. I think public finance should be able to be understood by the public.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next