Cost of Public Projects Is Rising and Pain Will Be Felt For Years

[erpowers]

I thought this was a good read. It discusses rising interest rates and the impact on municipal bonds and state infastructure building.

"States and cities across the nation are starting to learn what Wall Street already knows: the days of easy money are coming to an end.

Interest rates have been inching up everywhere, sending America’s vast market for municipal bonds, a crucial source of financing for roads, bridges, schools and more, into its steepest decline since the dark days of the financial crisis in 2008.

For one state, Illinois, the higher interest rates will add up to $130 million over the next 25 years — and that is for just one new borrowing. All told, the interest burden of states and localities is likely to grow by many billions, sapping tax dollars that otherwise might have been spent on public services."

http://dealbook.nytimes.com/2013/06/26/bill-for-public-projects-is-rising-and-pain-will-be-felt-for-years/?_r=0

[kestrel91316]

1. The "pain" of cecent schools? The "pain" of driveable roads??

Only RWers whine and fret about such things. The rest of us accept it as the price we pay for civilization.

[SharonAnn]

2. Well, since we didn't do what we needed to do in the days of "easy" money, I guess

we'll be paying more for things. Since we didn't maintatin things, didn't borrow money at low cost, etc., we'll pay more when things break down and pay more when we borrow money to replace them.