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Frequent readers of our blog will know that we often discuss the gap that exists between the need for capital investment in the water/wastewater sector, and the availability of both the necessary capital as well as the ability to repay debt. Indeed, our most recent blog post, Water Rate Affordability (Dec. 26, 2011), presents a [...]
So much has been said about our nation’s failing water infrastructure that another blog post would hardly do the topic justice. We’ve done plenty of them here already (here, for example). There have been many who have done well to help us identify the problem, and the problem is an imminently solvable one. We know [...]
We’ve said before that affordability is going to be one of the primary challenges faced by water and sewer utility managers in the coming years (Why Affordability is the New Challenge for Water and Sewer Utility Owners, July 2010). The story that is unfolding in Jefferson County, Alabama (home to Birmingham) sheds some light on [...]
With all the discussion right now over the federal debt ceiling, the topic of government debt has rightfully been placed in the public square for debate. Regardless of your position on the federal debt ceiling or on the federal budget deficit in general, it is a fallacy to equate all government debt as having been [...]
A while back, we raised the question of whether or not deflation (not IN-flation) was going to ruin the predicted economic recovery (Is Deflation a Real Threat?). Since we wrote that interesting post, the Fed has continued to increase money supply in the economy, resulting in no material change in unemployment and reports that corporate [...]
If you watched 60 Minutes (CBS) on Sunday 12/19 then you heard a story about how the States are in big trouble with their budget deficits that renowned Wall Street analyst Meredith Whitney says is likely to lead to a wave of municipal bond defaults. The prologue for failing municipalities looks like this: the State [...]
Eventually the piper must be paid. For municipal governments, balancing the budget is these days a constant concern and budget cuts are starting to hit core services as the recession plods along. In Washington, however, balanced budgets are not a concern, nor it seems is the staggering deficit that comes with massive spending programs that [...]