Friday, March 13, 2020

Good News, Bad News

OK, so the bond rates have collapsed. But let's look at the opportunity. Forget Washington, if the Hudson River Tunnel costs $20 billion lets get started. Here are the numbers:

First, from NJ Transit there are about 1 million rides per week day, 400,000 on Saturday and about 130,000 on Sunday. That is almost 300 million per year.

Now the tunnel is about $20 billion. So if we do a muni bond, 30 years and 2% yield that is about $3 per ride. I know it is a price increase but then we charge AMTRAK through the nose to use it! After all they have been the major problem all along and they are the FEDs.

So folks, get our Goldman Gov to work this out. I guess that was how he got rich in the first place.

Will this happen, no, think coronavirus management.