Friday, December 17, 2010
Pennsylvania treasurer proposes $650 miIlion bond sale | Reuters
Here's a classic political trick.
Pennsylvania's government is going to borrow less than originally planned, claiming a "savings" in interest expenses, which the media blindly reports.
But, just think about it.
Starting at NO expense, they plan to spend a high amount, and then, when they decide to spend less, they CALL it "savings"...
Pennsylvania's government is going to borrow less than originally planned, claiming a "savings" in interest expenses, which the media blindly reports.
But, just think about it.
Starting at NO expense, they plan to spend a high amount, and then, when they decide to spend less, they CALL it "savings"...
Jon Hurdle recently reported at Reuters.com:
"Rendell, the outgoing Democratic governor who proposed the $1 billion bond, will agree to the lower bond issue.
'It's less than we would have liked but, yes, we will do $650,' Rendell's spokesman Gary Tuma wrote in an e-mail.
SAVING OVER $36 MILLION A YEAR
Issuing $1 billion would have cost taxpayers $83 million a year in debt-service payments, McCord said. The smaller bond will reduce annual debt service by $36.3 million, he said."
