Unless you chose the federal cost of money rate, it has been about 1% for 13
years and counting.
-----Original Message-----
From: [email protected]
Sent: Sunday, October 30, 2016 1:49 PM
To: [email protected]
Subject: Re: [AFMUG] Ammon City fiber
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
