NYC MRT debt ... shocking

[phantom_opera]

NY Mass Transit Fares Will Rise 35% From 2007 To 2015, And Surge From There

total debt now is 31.8b .. expected to rise to 40b in 2016

As for how the MTA will fund its massive CapEx spending here is the simple answer: it will request, some time in 2015, that then president Barack Obama bail it out, to which he will promptly comply. After all, with total US debt crossing $23 trillion shortly thereafter, who will care about some paltry $20 or even $200 billion (as the number will eventually be revised to).

[hopeful]

how come NYC MRT didnt called the Saw Phaik Hwa to turn it around?

[indomie]

Too much debt, then print more money... Problem solved. This situation is very unique. Maybe only going to happen in our generation. We have cheap money around and inflation is not exploding yet.

Look at iran, because of US embargo their goverment has to buy expensive import and sell cheap to keep the people happy. But how long can they do it?. In the past week their currency plummeted more than 30%.

How long can USA keep this up? They are betting that as long as employment raises things will be alright. Tax money will start rolling in and trade deficit narrowed. They gonna keep the monetary expansion policy for a long time.

China is playing on US debt problem by making them more reliance on chinese cheap import and buying US bonds. They are in effect slow cooking the US in the pot. What is keeping the world from high inflation is cheap china product. But its not going to be cheap forever.

[phantom_opera]

to put things into perspective, the NYC MRT debt will be as big as Facebook market cap soon :scared-1:

[phantom_opera]

William Bennett:
Chicago teachers last went on strike in 1987, and schools were a mess
Little has improved, he says. Dropout rate near 40%; students not proficient in math or reading
Teachers reject 16% raise over 4 years despite system's $665 million debt

=> at least the debt looks small at 665m :p