Hayek_Boulder
11p5 comments posted · 0 followers · following 0
10 years ago @ Daily Camera.com: - Boulder to hire indepe... · 0 replies · +1 points
Appelbaum said the city wants to hear the truth from its consultants, and consultants have their own reputations at stake.
Let's see what is wrong with this statement.
1) The City has "its" consultants.
2) The City want to "hear the truth" implies a complete misunderstanding of modeling. Modeling does not produce a "truth". Garbage in, does not yield truth out.
3) The consultants are milking the tax payers. The consultants will be long gone and working on a new project before the economic damage cause upon Boulder is recognized by the consulting industry.
10 years ago @ Daily Camera.com: - Court apologizes for e... · 0 replies · +1 points
10 years ago @ Daily Camera.com: - Boulder confirms first... · 2 replies · -17 points
14 years ago @ Feld Thoughts - Board Meeting Lessons ... · 0 replies · +1 points
14 years ago @ Daily Camera.com: - Advocates shocked by B... · 0 replies · +1 points
I would add that I believe, but may be wrong, that the City would be obligated to pay off the bonds, not the ClimateSmart loan customers. The City would hope to offset the cash outlay to bondholders by the cash inflow from payments by the CS loan customers. The City would buffer bondholders from default by the CS loan customers, allowing the interest rate on the bonds to more closely track the market.
The financial exposure to the City's taxpayers, in addition to what bwg explained above, occurs if the City underestimates the default rate of the CS loan customers. If the default rate is higher than expected, then the City would have to make up the reduced cash inflow from other sources (e.g. reduced spending, increased taxes).
So, how good is the City at predicting default rates? Are they any better than the current governmental examples (Fannie Mae, Freddie Mac, FDIC, Barney Frank, etc)?
No thanks. The City should not attempt to run a bank.