Comments on: BREAKING NEWS: CA Gets $2.35 Billion Stimulus For HSR and Other Passenger Rail

By: Stephen Karlson

Stephen Karlson — Fri, 29 Jan 2010 05:42:00 +0000

The Royal Oak station, such as it is, is in the middle of an active suburban retail and entertainment district. The Dearborn station is near numerous corporate offices, not far from the airport, and has a reasonably-sized parking lot. The current stations are within walking distances of the University of Michigan, a short taxi ride to Western Michigan, and a somewhat longer (if interstate) taxi ride to Notre Dame. The value of a train is often in transporting people between intermediate stops, and some faster trackage through Detroit would be valuable for business travelers headed from the northern suburbs to Battle Creek, and better connectivity and faster service to Chicago would spare a lot of people the ordeal that is changing planes at O’Hare.

By: Dan S.

Dan S. — Fri, 29 Jan 2010 05:13:04 +0000

Strongly disagree BW. The responsibility of the “state” (be it the federal state or the local one) in my mind is to provide services and protect us from the predictable cyclic machinations of the free market. This requires, I believe, deficit spending in times of contraction to stimulate the economy. Defecit spending allows us to borrow money to create jobs, which gets the economy going again, and resulting future tax revenues have no problem paying back the interest on that type of stimulative investment.

Budgeting rules of thumb that work well for a family-sized unit do not necessarily scale up to meet the needs of a community of millions.

If you force the state to tighten its belt just as a faltering economy reduces its tax revenues, you are adding positive re-enforcement to the economic downturn. In today’s crazy world, that might not be bad politics, but it’s terribly destructive economics.

And shame on Obama for pandering with a freeze.

By: BruceMcF

BruceMcF — Fri, 29 Jan 2010 04:24:54 +0000

Excellent Hoover economics. Cut spending to force people to live within their means, when income drops as the result of the decline in economic activity cut spending again to force people to live within their means, when income drops as the result of the decline in economic activity cut spending again to force people to live within their means, and keep repeating until it works.

And, and since banks will be put under pressure as people start going bankrupt, be sure to bail out the banks. Can’t have them hurt by the side-effect of forcing people to live on ever falling incomes.

By: BruceMcF

BruceMcF — Fri, 29 Jan 2010 04:21:07 +0000

“2. Over time, as economic growth returns, and in fact is fueled by HSR spending, it becomes easier to pay off the bond debt. We have more tax revenue and more economic activity to fund it and other programs.”

… note that this self-funding aspect is much stronger at an 80:20 match than at a 50:50 match.

This is why, even if the outcome at Transbay ends up less than ideal, in financial terms only being on the hook for $1.85b under the reckless offer of a 50:50 match is likely better for CA in the long term. $1.85b at 50:50 and $7b at 20:80 would be a total of around $38.7b.

By: BruceMcF

BruceMcF — Fri, 29 Jan 2010 04:10:49 +0000

Could that be part of the rationale behind the Detroit West Suburban and North Suburban stations in addition to the downtown Detroit station? Its not as if Detroit Metro only has one station allocated in the plan. Oh, wait, I bet you are asking the question without first checking out the Michigan brochure.

By: Spokker

Spokker — Fri, 29 Jan 2010 04:04:36 +0000

BW, many people talk the talk, but when the federal spending that they benefit from is taken away they start bitching.

By: Joe

Joe — Fri, 29 Jan 2010 03:17:24 +0000

I am a land surveyor. What links are available where I can “follow the money” on what engineering/surveying firms are going to bid on work for the Calif. high speed sections?
Thank-you

By: AlanB

AlanB — Fri, 29 Jan 2010 02:06:12 +0000

Actually the White House page contradicts itself. Initially they state that they are extending from Rutland north to Burlington. Then in the details section they suddenly switch to Bennington to Rutland. Sounds like someone didn’t look at a map, or maybe two different people were working on the announcement.

All other reports that I’ve seen indicate that you won’t loose that second train Adirondacker, as the primary goal right now is to get to Burlington. Even the accompanying map shows the current Whitehall, NY to Rutland Ethan Allen, that then turns north to Burlington.

By: AlanB

AlanB — Fri, 29 Jan 2010 01:54:54 +0000

Chicago to Detroit is also the only place outside of the Northeast where Amtrak operates at speeds greater than 90MPH. Right now they have about 97 miles of 95 MPH running, making it the only currently operating high speed corridor outside of the NEC. Assuming that one accepts the definition of high speed for anything that runs over 90 MPH.

They’re hoping to get that bumped up to 105 MPH later this year.

By: BW

BW — Fri, 29 Jan 2010 00:05:53 +0000

http://www.greenvilleonline.com/article/20100125/NEWS/1250315/Debt-default-unlikely-to-end-tolls-along-Southern-Connector

http://blogs.tampabay.com/venture/2009/09/no-other-state-comes-close-to-florida-in-defaulted-municipal-bonds—the-chart-of-the-day-shows-the-number-of-bond-issue.html

“On the Brink

In 2009, more municipal bonds defaulted than in any year since 1992: 183 issues totaling $6.3 billion drew down reserves or failed to pay debt service, according to the Distressed Debt Securities newsletter in Miami Lakes, Florida. The dollar amount was the second-largest in the past 30 years, behind $8.2 billion in 2008.
Analysts expect 2010 and 2011 to be worse” (sorry dont have the link for this one)

While its true defaults have slowed in the last 6 months alot of liabilities will need to be refunded. If interest rates go up even 1% this will be the tipping point for many municipalities,