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This column lays out many of the pitfalls of Indiana’s attempt at leasing its tollway system.
This story outlines many of the objections to the way the pile of cash will be split. Here’s another one.
And here is a pay-to-play story.
Finally, the Joe Birkett saga is played out here.
posted by Rich Miller
Monday, Jan 30, 06 @ 1:52 am
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Do the authors of the first paper have any idea of the concept of present value (i.e. the idea that 100 dollars today is worth more to someone than 100 dollars a year from now)? They say that the 3.85 billion comes out to 51 million a year over the 75 years, which they say is slightly more than half what the tollway makes now. That analysis might make sense if we lived in a world with no interest rates or return on investment, but we do not. Frankly, if we assume that the toll road makes $100 million a year and that it will do so (in dollars adjusted for inflation) over the next 75 years, then this deal would make sense if one could expect to get an interest rate averaging around 2.1% over the next 75 years, which is very very likely. If you look at it in terms of present value, then, this is a great deal, and by presenting the fact that the deal averages out to about $50 million a year, the Times-Mail are either demonstrating that they do not understand the concept of present value, or that they are counting on their readership not understanding it.
Comment by Larry Horse Monday, Jan 30, 06 @ 2:37 am
As a side note, if the analysis that the Times-Mail put forward was true, then nobody should ever take out a mortgage, because the they are paying more back on nominal dollars over the 30 years of the mortgage than they are receiving from the bank.
Comment by Larry Horse Monday, Jan 30, 06 @ 2:41 am
Looks like the BrickheadJoe will sink AccordianGal All By HisSelf. Bad enough that he lets a Hired Truck Guy roam around DuPage freely (that would be Mr. Mikey V.) but now he cash from tollway vendors and try’s to do an all in the family line. I think the Gambino’s were the last to use that gambit — unsuccessfully. Next people will start looking at the Brickhead’s issuance of “get Out of Jail Free” cards to lawyers and contributors. Oppps
p.s. In case folks don’t yet see the truth behind GOP(as in MOPE) the item about the Brickhead Joe and the sleazy effort to defeat Sen. GeoKaris ought to make it very very clear.
Lake County Dems ought to cross over for Geo and smack the GOPs there…Good job CaptFax
Comment by Reddbyrd Monday, Jan 30, 06 @ 7:46 am