Metro asks for help with its loans
I suppose this was to be expected.
The Metropolitan Transit Authority joined 10 other transit agencies across the nation Tuesday as they urged Congress for help with financing deals imperiled by the credit crisis.
The move is the latest attempt by Metro and the other agencies to avoid millions in default payments triggered by the collapse of insurance giant American International Group.
AIG provided payment guarantees on lease agreements between Metro and several banks. Those deals required payment guarantees from insurers, such as AIG, with high credit ratings. The deals guaranteed by AIG now are in technical default as a result of the insurance giant's slashed credit rating.
Transit leaders urged the Treasury Department to take over the role of AIG and other insurers, according to a news release from the American Public Transportation Association.
Officials warned congressional leaders that 31 of the nation's largest transit systems could face $2 billion in payments in the coming months if their contracts with bailed-out banks go bad.
The good news is that in Barack Obama we have a President who is from an urban area, owes his election to urban areas, and actually cares about urban policy. As such, one can reasonably hope that he will see this as a priority. Of course, you never know what Congress will do, and for sure there will be plenty of other requests like this as the effects of the financial crisis continue to be felt. So it's yet another obstacle we'll have to sweat out and hope for the best.
Posted by Charles Kuffner on November 19, 2008 to Planes, Trains, and Automobiles
A bailout that makes sense!
I'm in favor of giving $85,000,000,000 to
America in a 'We Deserve It Dividend'. To make the
math simple, let's assume there are 200,000,000 bona
fide U.S.Citizens 18+.
Our population is about 301,000,000 +/- counting every
man,woman and child. So 200,000,000 might be a fair stab at
adults 18 and up. So divide 200 million adults 18+ into $85
billion that equals $425,000.00.My plan is to give $425,000
to every person 18+ as a 'We Deserve ItDividend'.
Of course, it would NOT be tax free. So let's assume a
tax rate of 30%. Every individual 18+ has to pay$127,500.00
That sends $25,500,000,000 right back to Uncle Sam.But it
means that every adult 18+ has $297,500.00 in their pocket.
A husband and wife has $595,000.00. What would you do with
$297,500.00 to $595,000.00 in your family?
Pay off your mortgage - housing crisis solved.
Repay college loans - what a great boost to new grads
Put away money for college - it'll be there
Save in a bank - create money to loan to entrepreneurs.
Buy a new car - create jobsInvest in the market - capital
Pay for your parent's medical insurance - health care
Enable Deadbeat Dads to come clean - or else
Remember this is for every adult U S Citizen 18+ including
the folks who lost their jobs at Lehman Brothers and every
other company that is cutting back. And of course, for
those serving in our Armed Forces. If we're going to
re-distribute wealth let's really do it... instead of
trickling out a puny $1000.00 ( 'vote buy' )
economic incentive that is being proposed by one of our
candidates for President.