Banks Blackmail Businesses Over Bailout Bill
Banks Blackmail Cities Over Bailout Bill
Banks Blackmail States Over Bailout BillAnd they are DOING IT AGAIN!
"Credit woes may put squeeze on transit agencies; Million-dollar repayments loom for some" by Brian Westley, Associated Press | October 25, 2008
WASHINGTON - Transit agencies around the country may have to come up with billions of dollars to repay investors as long-term financing deals disintegrate, a result of the global credit crisis that could eventually affect millions of commuters.
How is that BOWL of SHIT tasting, Amurka?
U.S. Banks Driving Credit Crunch ON PURPOSE!!
The problems stem from the collapse of insurance giant
Why are they even dealing with banks? So taxpayers can pay interest?
Officials say about 30 transit agencies across the country have entered into these types of deals, including those in Atlanta, Chicago, Los Angeles, San Francisco, and Washington. The fallout could mean less money for new trains and buses at a time when ridership in many areas has been steadily climbing because of high fuel prices.
Rob Healy, vice president for government affairs at the American Public Transportation Association, said some agencies could be forced to increase fares, cut bus routes, and delay long-term capital improvement projects.
All to REPAY BANKS!!!
In a once-common practice that the IRS has ended, many transit agencies entered into arrangements in which they sold equipment such as rail cars to banks. The banks then leased the equipment back to the transit agencies.
WTF?
Both sides benefited. The transit agencies were given a large sum of money up front, which could pay for various infrastructure upgrades. And the banks were able to rely on frequent lease payments while also writing off taxes on the depreciating property.
Washington's Metro transit agency made 16 of the deals, selling 600 rail cars worth more than $1.6 billion. In return, the agency made $100 million.
Why do I feel a "but" coming on?
AIG, which collected fees paid by Metro and other transit agencies, guaranteed that lease payments to the banks would be made on time. But AIG's financial problems have triggered a clause that allows the banks to demand their money all at once.
We have had some experience with that here in Massachusetts, making interest payments to banks to the tune of "a staggering $22 billion" for the Big Pit and paying off banks like UBS, who can "demand repayment of an additional $2 million a month beginning in January" while also receiving a "$179 million payment."
My response to the banks? FUCK YOU!!!!
Metro's chief financial officer, Carol Kissal, said yesterday that the agency is being asked to pay $43 million by next week. She said that under a worst-case scenario, Metro could be forced to make $400 million in payments.
That is FOUR TIMES what they BENEFITED!
Is this "deal" starting to STINK or what?
She said owing millions of dollars all at once could hurt Metro's ability to borrow money from other banks and eventually could affect service.
Well, FUCK the BORROWING!!!!
Marc Littman, spokesman for the Los Angeles County Metropolitan Transportation Authority, said the agency participated in eight so-called sale-in, lease-out financing deals insured by AIG. The total value of the deals was $1 billion.
Under the agreements, the agency sold buses, train cars, five maintenance divisions, a parking garage, and bus plaza to private equity investors and then leased the facilities from them, Littman said. "Worst-case scenario is we'd have to come up with $100 million to $300 million very quickly. That would be problematic for us," he said, adding that cutting services or raising fares would be a last resort. --more--"
Did a BANK ever show mercy?
"T to delay bond offer until after election; Doubt over Question 1 a factor in decision" by Eric Moskowitz, Globe Staff | October 25, 2008
The T is delaying the offering even though the MBTA receives no direct funding from the state income tax. Actual elimination of the tax - and with it, the roughly $12.5 billion annually it generates for the state - would undoubtedly harm the state's credit rating and limit the ability of Massachusetts, and its cities and towns, to borrow to pay for everything from roads and bridges to prisons and university buildings, analysts and officials have said.
GOOD!! I'm SICK of being BLED DRY by BANKS!
See: Mass. Economy at the Mercy of Wall Street as it Borrows Itself Into Oblivion
"It would totally undercut the Commonwealth's ability to service its debt, and the whole stability of the Commonwealth," said Stephen P. Crosby, who served as secretary for administration and finance under Republican governors Paul Cellucci and Jane Swift and is now dean of the McCormack Graduate School of Policy Studies at UMass-Boston. "It would be catastrophic."
I am TIRED of the FUCKING SCARE TACTICS when there is SO MUCH WASTE in this state!!
Of course, "flushing . . . millions of dollars away supporting a highly profitable industry" when it comes to $300 million in taxpayer dollars for Hollywood is o.k., and paying $13 million for a computer software system that could have cost less than $3 million is all right, and the lottery shelling out "millions of dollars" for sports tickets for "lottery officials, their family members, and friends" is fine, and making interest payments to banks to the tune of "a staggering $22 billion" for the Big Pit and paying off banks like UBS, who can "demand repayment of an additional $2 million a month beginning in January" while also receiving a "$179 million payment," while the state pension fund loses $1 billion dollars -- which still didn't stop the executive director from carving himself a nice "$64,000 bonus on top of his $322,000 annual salary." Oh, and did I not mention the golf courses, the tv ads, or the RECKLESS BORROWING while SITTING ON $2 BILLION DOLLARS! Need one final insult?: Massachusetts Gives More Money to Hollywood
The MBTA receives about half of its roughly $1.4 billion in annual revenue from a dedicated portion of the state sales tax, and other funds come from a variety of sources, including T fare and federal funding, with about 10 percent coming from assessments billed to cities and towns in the service area. But because that money comes directly from state aid to cities and towns - and is fueled by the income tax - the underwriters told the T to wait.
The T's decision follows a report released earlier this week by the Lexington-based economic analysts Global Insight saying that Question 1's passage would harm the state's bond rating, because it would eliminate roughly 40 percent of state revenue and limit the state's ability to spend in the future. Among other things, that would make existing debt payments occupy a larger percentage of the budget and further leverage the state, according to the report, which was commissioned by four leading business-backed groups who want to keep the tax in place.
So what's the answer? Keep TAXING and BORROWING!! PFFFFFTTTT!!!!
"If this passed, this would expose Massachusetts to almost immediate downgrading of credit and dry up access to funds," said Michael Widmer, president of the Massachusetts Taxpayers Foundation, which helped fund the study. "It would have a domino effect that would have drastic impacts for public and private financing in the Commonwealth."
A-HA!! I told you he was a PRO-TAX, PRO-BUSINESS Globe staffer, 'er, source!
And THERE HE IS AGAIN!
Carla Howell, lead advocate for Question 1, said yesterday that taxpayers would benefit if the state had to hold off on issuing bonds to pay for more projects and instead learned to operate within its means, just as taxpayers do.
I'm surprised the Globe is giving her equal time.
"The state needs to quit spending and borrowing," said Howell, a former Libertarian gubernatorial candidate and the chairwoman of the Committee for Small Government, which petitioned to place Question 1 on the ballot. "They're racking up some of the worst debt in the country, because they won't stop their addiction to spending. It's reckless and destructive, and it's a ticking time bomb," she added. --more--"
The Massachusetts Turnpike Authority, struggling with debt and a burgeoning credit issue, has postponed its monthly meeting, a move one member said could trouble creditors and put the quasi-state agency in more financial trouble.
Turnpike Authority officials have signaled in recent weeks that toll increases are inevitable as the agency struggles with $2.5 billion in long-term debt, mostly related to the Big Dig.
The residents of this state are never going to be able dig out of that hole!
The agency has had difficulty getting loans with favorable terms.
WTF? Why? Thanks for the HELP, banks!!! What a bunch of VAMPIRES!!!!!
The decision increased the threat that the agency will be forced to immediately repay a $37 million loan that was part of a financial deal made nearly a decade ago.
We have had some experience with that here in Massachusetts, making interest payments to banks to the tune of "a staggering $22 billion" for the Big Pit and paying off banks like UBS, who can "demand repayment of an additional $2 million a month beginning in January" while also receiving a "$179 million payment."
My response to the banks? FUCK YOU!!!!
A decision by the Turnpike Authority's other bond rating agency, Fitch's, could allow creditors to require the immediate repayment of the loan, which could financially break the agency. --more--"
Hey, banks: FUCK YOU!!!!!
