Skip to comments.California agency on road to biggest bust since Detroit
Posted on 09/11/2013 10:03:17 AM PDT by george76
The toll-road authority of Orange County, Calif., is nearing the biggest municipal default since Detroit's record bankruptcy
The Foothill-Eastern Transportation Corridor Agency... risks default on $2.4 billion in debt, according to a consultant to the Debt and Investment Advisory Commission of California Treasurer Bill Lockyer.
(Excerpt) Read more at cnbc.com ...
Only in California could a TOLL road authority be bankrupt. Its almost as bad as the state off-track betting authority going bankrupt in New York City.
Something else Ca will subsidize.
Art Laffer was correct. Detroit is in pretty good shape compared to what’s coming down the pipe for most cities and states.
Just last week I read that the Massachusetts bay transit authority has a debt half as big as Detroit’s by itself.
Eight bucks *one way* — sixteen bucks round trip — during peak time ... and they wonder why no one uses it. Brilliant.
Just one domino of many
Exactly. A commuter would spend over $300 a month on tolls just to and from work. guess people really are voting with their wallets.
In time saved it works out to about a dollar a minute. So unless your time is worth $60 an hour, you are not likely to waste your money.
It is basically a private road for doctors, lawyers and corporate big shots. And it still backs up for miles going onto the 91 in the afternoon.
It’s California, it’s run by liberals, all they have to do is tax the people, whatever they need to pay the debt.
I mean it does seem the residents of California have no breaking point. /s
During rush hours the toll roads turn into roads for the well off only, considering what the jack the rates up to.
All cities and states suffering from this sort of financial trauma are surprise.......Run By Democrats!!!
Just tax the cr*p out of private jets per mile. That should get the Hollywood lovelies attention.
>> Eight bucks *one way* sixteen bucks round trip during peak time ... and they wonder why no one uses it. Brilliant.
If more people don’t start using it, by gum, they’ll just have to raise the rates even higher!
(Seriously... that’s what they threaten to do for Central Texas toll roads!)
Capitalism presumably operates under the law of supply and demand. So tell me what the psychology is that instinctively wants to raise prices when sales drop? In what economics textbook does the psychological component of valuation receive analysis? In what economics textbook does artificially created appetite receive analysis. In what textbook does fear and depression in relation to buying habits receive analysis? In what economics textbook does the irrationality of short sighted financial looting receive analysis?
How can the textbook laws of capitalism be complete without an integration with the laws of human psychology?
Exactly!!! Lose a little on each one and make it up in volume!