No Taper? Tapering the Taper Talk.
Cost of Public Projects Is Rising, and Pain Will Be Felt for YearsAs usual, the Onion was way ahead on this strategy: here’s a 2008 article titled: “Asian Markets Fall Like Cherry Blossoms In Gentle Spring Rain.” Note the brilliant haikus sprinkled like soy sauce on my tuna roll throughout the piece.Sony failed to provide confidence in a market already as skittish as the aging husband of a teenage bride, forcing investors to shore up cash reserves with orders of durable goods and agricultural products. “Fading dollar’s gleam, a feeble warning beacon: Seek bellies of pork.
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 formunicipal 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.But tax receipts will increase if the economy is stronger.
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