Wednesday, April 18, 2007

every scam requires a sucker

I love this commentary by Jay Bookman:

"Get your free money!" the sales pitch goes. "Billions and billions of dollars in free money! Just step right up and sign right here on the dotted line. ..."

And public officials, desperate for money to build badly needed roads and bridges, are indeed stepping right up. In Indiana, a private consortium recently handed the state a cool $3.8 billion in return for the right to collect tolls for 75 years on the state-owned Indiana Toll Road. In Chicago, city leaders have collected $1.83 billion in return for a 99-year lease on the Chicago Skyway toll road. In Texas, a private group has agreed to pay the state $2.1 billion just for the right to build a toll road that doesn't even exist yet. And by the end of the year, Georgia Transportation Commissioner Harold Linnenkohl expects a similar type of long-term lease deal will be floated for an unspecified project here in metro Atlanta.

It all sounds so sweet: State officials get billions of dollars without having to raise taxes; private companies get long-term leases on toll projects that are all but guaranteed to turn a nice profit for them, year after year; bankers, financial analysts, lawyers and consultants all get a healthy cut of the billions passing through their hands. Everybody's happy.

But of course, to make such an arrangement work, there's gotta be a sucker somewhere. Look in the mirror. You're it.

Read the whole thing here.

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