Monday, June 28, 2010

Maybe New York should have been called New Greece

One of the problems with the credit default swap market is that it provides real time data on the market's opinion of the creditworthiness of an entity.

Well, if that's the case, things are looking a little bleak here in NYS. Despite hints that progress was being made on finalizing a state budget the cost of credit protection for NYS has jumped about 20% in the last week. This is roughly the same jump seen in states like CA, NJ and IL over the same period. Also, consider that the cost of credit protection for NYS is now higher than Spain's and roughly the same as Portugal or Croatia.

I noticed that our sewer district is considering expanding their service to include another 500 homes at a cost of about $12 million. Knowing a little bit about the area to be served I'd guess no more than 1/3rd of those homes are year-round residents so the real cost is about $12 million to serve 167 homes. I'm in favor of preserving the environment and protecting our river, but at some point you have to weigh the costs versus any perceived benefits. Separately, I'm always amazed by local officials that point to grants and rural development funds as sources to pay for projects like this. Where does that money come from? First National Unicorns, Inc. or from Federal Tax Receipts collected from me???

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Weird news of the day.....

1) Sometimes when you buy an American Flag for a dollar, you get a flag that is worth about a dollar. In related news apparently China thinks we have 61 states. That might explain why they keep buying our bonds -- they think we own Canada, Mexico and all of Central America.

2) Apple says it's sold 1.7 mil iPhone 4's. According to my sources at least 13 completed calls were successfully made over the weekend with the phones :)

3) If you needed another reason to hate Verizon please consider this story: A marine is killed in action in Afghanistan. His widow moves home to be closer to her family. Verizon coverage is terrible in her hometown so she calls to cancel her service. Verizon says sure -- That will be $350 for the early termination fee. Update: They've apparently waived the fee, but it took lots of bad publicity on the web before they stepped up.

Cheers!

1 comment:

The Hermit said...

Flag: Obama doesn't know how many states there are either.
Palin knew Russia was just across the pond, and gasp.... did you know Africa was a country??
Reminds me of Quale's potatoe.
Hooked on fonics werks fur me.
Heard over the weekend "look ma, my diploma, wonder what it says".