No free rides

No Free Ride

Moody's Investors Service rates $47 billion in bonds sold by states and municipalities for toll roads, and liked the idea of privatization well enough in a report on the subject published in September.

For one thing, the report said, leasing the roads to someone else removes the political obstacles to raising tolls. Not raising tolls ``can lead to pressure on financial margins, lower debt service coverage ratios and elevated credit risks,'' according to Moody's.Rating companies like things such as fees and tolls, and especially taxes.

Politicians really hear it when tolls are increased. Most Americans still seem to subscribe to the notion that, at some point, toll roads have been ``paid off,'' and that the toll booths should come down. In reality, of course, there's no such thing as a free ride, except on the federally financed Interstates.

Transfer Risk
Leasing toll roads means transferring operating, maintenance and construction risk. Moody's said it views this in ``a generally positive light,'' so long as governments make sure that the private operators keep up their end of the bargain.


Say goodbye to riding free and say hello to tool booths and more surveillance maybe even checkpoints. Fuckers. I hate the privatize it all greedy pigs.
http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_mysak&sid=aDmGgJWMlM9E

in fact, privatizing public infrastructure, in general, is a bad idea... at least if you happen to be a member of the public.


1) It's unconstitutional, and represents taxation without representation, IMO.

2) It tends to INCREASE corruption, not decrease.

3) It tends to INCREASE the cost of the utility, which is never in the best intrest of the public.

4) It creates legal gray areas, especially where things like roads are concerned.

All in all, just a bad idea.