Gov. Rick Scott Rejects Funding for High Speed Rail.

Discussion in 'Congress' started by WillowTree, Feb 16, 2011.

  1. DiveCon
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    sorry, but i wouldnt go into business on something like that with that much government money involved
    you lose control
     
  2. Immanuel
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    Immanuel Gold Member

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    What? Do you think the government has any control?

    If they are footing the bill for losses and I keep the revenues? Damn right I am going to think seriously about going into business like that.

    Who says they are going to control anything? They will provide the seed money. The private investors will get the revenue. Should things go sour like Amtrak, the government will provide incentives to keep the trains rolling... sounds like a win for the private investors all the way around.

    Immie
     
  3. DiveCon
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    that aint what would happen
    they would end up taking over your project
     
  4. Immanuel
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    Immanuel Gold Member

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    I can't say for sure, but I think you would be wrong on that account. :eusa_shhh:

    Immie
     
  5. DiveCon
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    they didnt take over amtrak? :eusa_whistle:
     
  6. asterism
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    asterism Congress != Progress

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    Government funding would mean government micromanagement of the operation. That's not a good idea for private investors. Look at what happened to GM's bondholders.
     
  7. Immanuel
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    Immanuel Gold Member

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    Amtrak - Wikipedia, the free encyclopedia

    I'm not following you. As far as I know, Amtrak is government owned and always has been.

    There is more at the link.

    Amtrak came about because the passenger railways were failing. The way I understand it is that the government did not "take over" from the railways rather they had it thrown in their laps. It was either fund it or watch the industry go "Buh Bye".

    Immie
     
  8. DiveCon
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    they took over other failing railroads and made Amtrak out of it
     
  9. Immanuel
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    Immanuel Gold Member

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    That is a completely different set of circumstances than what we have here.

    My personal opinion is that the auto industry and the banks cried wolf and we bailed them out when we should not have done so. Basically, I would have called their bluff.

    I have not been following the issue with the bondholders, so, I am only answering this from what I can see in the few minutes that I have been looking for this.

    Buying bonds is a risk. Anyone who buys a bond is taking the risk that the issuer will default. In this case, that is what has happened although it seems that they are being offered stock to replace their losses... that is more than most bondholders of defaulting companies receive.

    GM bonds to keep trading after IPO | Business News for Wichita Kansas | Local Journal of Wichita Business News and Kansas Business News | Wichita Eagle

    In the case of the HSR, it seems more like this would be seed money to start the process not control the rails. It does not appear that the money offered to the State of Florida came with "strings attached" it was just seed money.

    Immie
     
  10. Immanuel
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    Immanuel Gold Member

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    A) Took over or

    B) Had the rails dumped in their laps?

    Hint: choose B.

    Immie
     

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