"'It was like the dam broke'; Commonwealth scrambles to borrow amid meltdown" by Casey Ross, Globe Staff | October 12, 2008
The battle to raise money through normal channels turned out to be costly. Along the way, to sustain the state's cash flow, the treasury wound up borrowing $200 million at higher-than-normal interest rates, resulting in millions of dollars in additional costs for taxpayers.
Yup, BORROW the STATE INTO OBLIVION so they can PAY INTEREST to BANKS while the state is SITTING ON $2 BILLION DOLLARS!
Short-term borrowing is critical to the daily operations of governments because the flow of tax revenues is uneven - it varies from month to month and quarter to quarter. So the state regularly looks to debt markets for cash to pay bills, fund services, and meet payroll.
Because the STATE is working for BANKS "interest" -- pun intended -- not YOURS, taxpayers!
And just look who benefits (CUI BONO):
"state treasury officials this week hired two New York-based banks,
That meant millions of dollars in unanticipated costs for taxpayers. The banks' services would cost $360,000. --more--"
Hey, this state has no problem throwing our money away anyway, so.... not hurting the politicians in the wallet!!!
