Running Out of Money, Cities Are Debating the Privatization of Public Infrastructure

[groovedaddy]

Cleaning up road kill and maintaining runways may not sound like cutting-edge investments. But banks and funds with big money seem to think so.

Reeling from more exotic investments that imploded during the credit crisis, Kohlberg Kravis Roberts, the Carlyle Group, Goldman Sachs, Morgan Stanley and Credit Suisse are among the investors who have amassed an estimated $250 billion war chest — much of it raised in the last two years — to finance a tidal wave of infrastructure projects in the United States and overseas.

Their strategy is gaining steam in the United States as federal, state and local governments previously wary of private funds struggle under mounting deficits that have curbed their ability to improve crumbling roads, bridges and even airports with taxpayer money.

With politicians like Gov. Arnold Schwarzenegger of California warning of a national infrastructure crisis, public resistance to private financing may start to ease.

http://www.nytimes.com/2008/08/27/business/27fund.html?th&emc=th

[angstlessk]

1. drown it in the bathtub...thanks grover!

:grr:

[ck4829]

2. Shock doctrine at work here in the US

While we're filling the coffers of the contractors, a temptation to privatize everything starts to creep into everyone's minds.

[Frances]

3. Haven't we learned our lesson?

Private financing just means incompetent cronies rip off the taxpayer

[tama]

4. Answer to your question:

No.

[CrispyQ]

5. But, but, but . . .

Private industry can do everything better than government! :sarcasm:

The American people have fallen for that meme & the trickle down economics meme, hook, line & sinker! :banghead:

I'm reading George Lakoff's book "The Political Mind" & he argues that anything that has moral implications, like health care, education, water & food safety, etc, shouldn't be privatized. These things shouldn't be for profit. So far, it's a very good read. He expands on the difference in world view between conservatives & liberals that he started in his book "Don't Think of an Elephant."

[phantom power]

6. Selling the seed corn.

[Locrian]

7. stunning - I just dont get it

The public LOVES the "privatize it" meme. And I just DONT GET IT. How the F does anyone think it will be cheaper to have a FOR PROFIT business running things?

Oh yeah, that's because all the Republicans need to do is WRECK the public owned businesses by not funding them or staffing with cronies. Then they sell it out to (the same cronies) and claim mission accomplished. And the dumb sheep fall for it every time.

When I read Naomi Kleins Shock Doctrine I was amazed at time and time again even the LEFT wing govs fell for the economic voodo of capitalism / privatization. They won the country (elections whatever) but lost it in the long term economic / legal front.