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View Diary: Can a Small California City Take on Wall Street - And Survive? (298 comments)

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  •  borrowing accelerates needed infrastructure (4+ / 0-)
    Recommended by:
    jpmassar, cotterperson, BYw, llywrch

    and avoids loose slush funds for local pols.

    having watched the city council in action, trust me, you don't want to leave loose pools of money around, make them do the lift to justify debts.

    Say a city needs a bridge to connect 2 sides of town and grow revenue.  Now they can wait 15 years, save the money,
    or they can borrow and build the bridge now, and pay for it with tolls and the city general revenue.
    (See the Brooklyn Bridge).  

    It's better to get things like that online now, and pay it back,
    same story, you could spend 10 years sleeping in your moms basement, post college and save up for a house or you can
    borrow and get a house now.

    it's like a lot of things.

    you have to make the right decisions.

    •  Individuals can't requisition funds. (1+ / 0-)
      Recommended by:
      white blitz

      Public corporations are different. While the Congress is unique in that it issues the currency it then collects as revenue, local governments do have to collect taxes and have the power to take property, if the taxes aren't paid. Recurring expenses should be paid with recurring revenue. Major capital improvements can be financed. But, if our financial system made sense then public corporations would get dollars from the Fed at the same rate as banks .025% currently.
      The investor class is parasitic. We should not let them get away with it.
      The easiest way to accumulate money is to steal it. Stealing it legally is even better.
      There's a reason the banksters haven't gone to jail and are continuing to accumulate bucks. They got their friends in the legislatures to pass laws to make thievery legal.

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