Lewis Bergman wrote: > Chuck mentioned 1% rates for RUS. Definitely below market. Here are the current RUS interest rates: http://www.rd.usda.gov/programs-services/services/rural-utilities-loan-interest-rates#BaseRates
Looks like a 30 year bond rate is 2.6-4.425%. > Are you saying that Comcast got tax money to build a building? Yes. > I'd you ate asking about their fibancials in this specific case of course > not, but you knew that. You have no knowledge about their financials, yet you have no problem opining on their profitability? > I believe it is reasonable if their margin was acceptable they would have > continued. That's assuming a lot. And you know what they say about assuming. > I haven't heard you spilled any facts relating to your claims that am this > wonderfulness coat nothing but I > didn't see the 50 yeasts of proof. Translation please? >>> But Utopia lives on and AT&T is gone. So even though anecdotal it proves my >>> point. >> And what point would that be? > That even a small tax funded entity can take huge losses and survive when no > other entity without such lack > of accountability to reasonableness would. It is likely that most wouldn't > even want to continue. But nice > move. No counterpoint? Just make some blank stare arguement worth two words. > Really getting your point > across. Um, what? I asked you a question for clarification, how is that supposed to be a counterpoint? As to small tax funded entities, let's assume we are talking municipalities here. Like any privat entity, a municipality can declare bankruptcy. Both public and private entities can bond, make bad investments and cover their losses, as long as they have the assets and cash flows to do so. What's so special about that? A big difference is that before floating a municipal bond, the local inhabitants have had their say and most probably also have voted on the issue. In fact the whole thing would never have even come up, if there wasn't strong local demand for it. So, the people have voted and a bond has been floated. A network is built. Sometimes it works out, sometimes it doesn't. If it does not work out, the local taxpayers end up paying for the investment with their tax dollars. So what? It's totally on them, they knew what they wanted, they knew what they were getting into and they knew the risks. This is not so different from a private company writing down a bad investment. The main difference is, you, as a shareholder, rarely have had any direct say in whether the investment should have been done at all in the first place. Jared
