Wednesday, November 16, 2016

Magic Walrus attempts a spawn

Bloomberg: A key member of Donald Trump’s transition team said the incoming administration is exploring ways to fund fixing bridges and roads including by establishing an “infrastructure bank,” a concept Hillary Clinton promoted and the Republican’s campaign had previously derided.
Steven Mnuchin, a member of the team’s executive committee who was recommendedfor the position of Treasury secretary, said in brief comments to reporters Wednesday that a “very big focus is regulatory changes, looking at the creation of an infrastructure bank to fund infrastructure investments.”
Trump’s campaign had criticized Clinton’s proposed infrastructure bank as being “controlled by politicians and bureaucrats in Washington” and funded by a “$275 billion tax increase on American businesses.”
Voters get to bid their future income streams on local government projects.   Sort of like a central exchange for municipal capital improvement bonds.

What is the catch?
It opens another temporary door to flow small state funding, or more generally funding on the municipal level; bypassing large state governments.  Beyond that, it can work or go haywire, depending on how well it can compress the bets; which means, is there a hidden price fixer built in, a letter_to_daddy()? Any fix these yawkers put in will be spotted and hedged by day two.

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