Wednesday, December 2, 2009

Wall Street extorting money from struggling municipalities



1 comment:

Ryan said...

"...Representative John Lewis (D-Ga.) and Senator Robert Menendez (D-N.J.), would impose a 100% tax on termination payments like those in the CTA deals to dissuade banks from going after struggling municipalities."

I wonder whether that would hold up in court. I feel like it would not although I'm not sure why. But more power to them.

The criticism of lease-backs is interesting as well.

I'm struck by how much Detroit has just been pillaged by corporations. Clearly planners and pols are complicit, although I know people have made good decisions as well.

However, GM was essentially responsible for deliberately junking their rail system in the early part of the last century when it bought it up gradually and let it go to waste purposefully in order to run the city on cars. The car became the predominant industry (obviously), and then that industry largely abandoned the place. Let's leave the argument that the city should have diversified its economics for another time.

The banks and the auto industry are similar anchors of our economic system to me. So who is bailing out Detroit?