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interestrateripoff

Arizona Sells Supreme Court Building In 20 Year $300 Million Leaseback Deal For 3 Month's School Aid

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http://globaleconomicanalysis.blogspot.com/2010/06/arizona-sells-supreme-court-building-in.html

Going into long term debt to pay short-term operating expenses is fiscally unsound. Going into debt for 20 years for 3 months operating expenses is beyond the absurd. Nonetheless, that is exactly what Arizona did.

Inquiring minds are reading Arizona Sells Supreme Court Building in $300 Million Bond Deal.

Arizona, which sold state prisons and offices to raise cash six months ago, plans to borrow $300 million by marketing its Supreme Court building and about a dozen more properties through leaseback bonds starting today.

Investors will hold ownership of the court building in Phoenix, the fifth-largest U.S. city, and the Arizona Schools for the Deaf and the Blind in Tucson for as much as 20 years, with the securities maturing serially from 2012 through 2029, according to offering documents. Lease payments will back the debt, known as certificates of participation.

Arizona, whose foreclosure rate last year was ranked second-highest after Nevada by RealtyTrac Inc., will use the sale to pay for three months of school aid. The state raised $709 million for education payments when it sold and then leased back nine properties to investors in January.

“From an investor point of view, this is great,” state Treasurer Dean Martin, 35, said in an interview. “The state has to have buildings to operate and we’re the largest employer in Arizona.”

Wrong Point of View

Who gives a rat's ass if "This is great From an investor point of view"?

Here's what Arizona taxpayers need to decide: "Is this great from a taxpayer point of view?"

Obviously it is not. Just as with other states, this is more kicking the can down the road action in a bury your head in the sand mentality.

Arizona politicians need to accept reality: This economy is going to be weak for a decade thanks in part to refusal of politicians to address fiscal issues, union salaries, and union pensions now.

The problem is not lack of revenue, the problem is state spending gone rampant, with political hacks lacking the discipline to do anything about it. I do not care how favorable the interest rate or other terms are, going into debt for 20 years to get 3 months operating expenses is simply insane.

I agree with Mish that this is totally insane, this is how fooked the US is, thank god they have everyone focussing on the Euro mess.

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but when the recovery is locked in and GDP growth will be surging from next year I'm sure they can afford it.

It's like re mortgaging your house to pay the credit card bill. But it's ok because house prices are only going up now the recession is over...

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It couldn't happen here

No, it couldn't happen here. Our economy has been run far too well for such a thing to ever take place. We're lucky to have had people like Brown, Blair and Balls in charge. I thank them every day.

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No, it couldn't happen here. Our economy has been run far too well for such a thing to ever take place. We're lucky to have had people like Brown, Blair and Balls in charge. I thank them every day.

Although, isn't there a plan to do something similar with our motorways

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no there's no need,the recovery is locked in,according to interestrateripoff.and he's a close friend of gordon,who told him that himself

He did, but he assured me it could only be guaranteed if he got re-elected unfortunately the muppet's elected an untried PM who lacks the experience of delivering 10 years of continual growth via sustainable debt.

Debt is wealth.

And globally it's contained.

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Lol.. selling the supreme court building for the state. Bankruptcy approaches, this might buy them a few months though.

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...

And globally it's contained.

i.e. restricted to the planet. At least the rest of the solar system is still solvent ;)

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i.e. restricted to the planet. At least the rest of the solar system is still solvent ;)

For the time being, we don't know how far the tentacles of the Giant squid stretch....

Hopefully it will be contained within the solar system.

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On the Daily Show they interviewed the Governor or whoever it was who had the bright idea to do this. Unfortunately any link I find I can't see because of being in the wrong country e.g. The Daily Show for Americans only

From what I remember the interviewer mocked her, and she took it like 'what can I do', the answer being 'not this'. They did it anyway. Idiots.

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Guest X-QUORK

I got to about post 4 and thought "Hold on, this must be one of those resurrected threads from 2007". :blink:

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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