Something is Stinking in the Woodshed

Imagine having more money than you know what to do with. Apparently Denton County is in that enviable position. So let’s just loan it to a worthy cause – or we can loan it to Dallas County to build their highways. How generous we are in these times of need.

Mr. Polster may be a fine transportation consultant. Anyone who doubles their fees in one year must be good. But I think he should leave the investment advice to someone else. On the same day it is reported the county will make 1.5% on this loan, 10-yr Treasury notes were going for 2.5%. They could have bought DART’s own bonds and earned 2.6% for the same maturity date.

Now I get it. Mr. Polster finds Dallas a source of funds cheaper than they would have to pay on the open market. Since all of Denton’s roads are in perfect shape and in no need of adding lanes, they make a whopping 1.6% instead of .5%.

One question though – does he receive anything for this arrangement? It was reported earlier that he has contracts with many of the local governments. Does he receive a finder’s fee for this generosity?

Not that it matters. When less than 10% turn out for local elections and every incumbent gets re-elected I guess everyone is happy with the status quo. The same players will continue to rule over their dominion and we just get pulled along by the nose – or wallet.