Transportation Infrastructure Projects
By Barry Ritholtz - May 24th, 2009, 1:30PM
Every day I get up and look through the Forbes list of the richest people in America. If I'm not there, I go to work. ~Robert Orben
Macro Notes
CFTC data, euro net shorts fall 38%Peter Boockvar
According to the CFTC weekly data for the week ended Tuesday, net shorts in the euro fell by 38% from last week's record high and are now at a 6 week low. Net shorts in the pound moved up a touch to just shy of its record high. Net longs in the Australian$ rose to the most since May '08 and net longs in the Canadian$ rose to the highest since Nov '07. Gold new longs fell to a 4 week low. Net longs in crude rose 14% and are just 12k contracts from a record high dating back to...
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May 17th, 2009 at 12:45 pm
locally, and throughout SE Penn, these projects are being “worked” on 9-5.
one would think that, if these ‘projects’ were so important, they would have taken a page from the SeaBees, or, at the minimum, found a few more hours in the Day, to actually get them completed.
afterall, 24 x 7 = 168.
Somebody should give these Men a Ring..
http://www.nsva.org/
they’ll explain it to you.
May 17th, 2009 at 1:23 pm
Look how similar: http://subsidyscope.com/projects/bailout/tarp/map/
May 17th, 2009 at 1:27 pm
A quick look at these tells me that there’s no real justification for many of these projects. There’s absolutely no reason some places like Alaska & Wyoming are getting so much money considering their tiny population.
So much for reduced wasteful spending.
May 17th, 2009 at 1:55 pm
I think that chart is a good map of how much pull each rep. has in the government. Probably directly proportionate
May 17th, 2009 at 1:57 pm
Here in China, they’ve been resurfacing the road in front of my house for the last two weeks. It was perfectly fine, no potholes, relatively new, shiny, and black. Not sure if it’s part of the stimulus, but it makes me wonder if the money couldn’t have been better spent elsewhere…..
May 17th, 2009 at 2:00 pm
So what happens if/when the project $$ is mis-allocated and completed? We do have major infrastructure needs, but why do I not feel confident that the most glaring needs will be sufficiently addressed and that much of the money will go to unproductive boondoggles?
What happens after more empty buildings are completed? Another stimulus plan to build more empty buildings?
May 17th, 2009 at 2:21 pm
Look at Alabama. Mississippi’s roads and bridges are much worse, and Georgia isn’t exactly a paradise either. But Bama’s rocking in comparison. This is obviously pork directed. Maybe Sen Shelby is talking out of both sides of his mouth?
May 17th, 2009 at 2:28 pm
A lot of counties in the South have/or had 2 courthouses. These were built during the depression on make work projects and expedited by the very old, very powerful Southern senators and representatives.
May 17th, 2009 at 3:07 pm
Common Man 1:55
Says it all.
May 17th, 2009 at 3:14 pm
Four step plan to reduce unemployment:
Step 1: Build more courthouses
Step 2: Building more prisons
Step 3: Enforce stricter sentencing guidelines
Step 4: Trump up charges against the unemployed
Result: Green shoots and mustard seeds
It’s so diabolical, I’m surprised no one has thought of it yet. It’s right up there with bulldozing excess housing inventory. Anything to put more lipstick on the pig.
May 17th, 2009 at 3:46 pm
Per person, Calif certainly came out poorly, and they have 10% unemployment. My county has 150,000 people and is getting $8M, San Diego has 3M people and is getting $16M. We did 10 times better and their unemployment rate is about 90% higher…
May 24th, 2009 at 1:46 pm
I grew up in the days of James Eastland and John Stennis as the two senators from the state of Mississippi. If you notice the chart, Alabama is darker blue than Mississippi, by a long shot. If “Big Jim” and John Stennis were still our senators we’d be a lovely shade of royal blue (in Mississippi)
Ah, partisan politics…and Senator Shelby comes from which state?
…Not carping…just observing…it is what is wrong with the system on a nationwide basis…West Virginia was spoon fed for awhile too. Just the way things happen in an anti-Jeffersonian kind of way.
May 24th, 2009 at 1:49 pm
But carried a bit further…Illinois is darker than Kentucky…West Virginia darker than Virginia…South Carolina darker than North Carolina….hmmmm…must be coincidence..
May 24th, 2009 at 1:59 pm
I notice that Clark County Nevada (Harry Reid’s “white elephant” railway from Sin City to Disneyland) is profiting handsomely…
Also,
The “heat island” effect that new asphalt creates is a large contributer to higher surface temperatures (especially within urban confines)…This, in turn, creates excessive demand for air conditioning or other indoor climate control reflexes that people use to keep themselves comfortable…
Therefore…Worried about global warming? STOP FIXING THE DAMN ROADS!
On the other hand, there are ’some’ positives that could be generated…Scientists have studied ways to recapture the heat from the asphalt and channel it back into energy production via copper tubing conduits…
But I don’t suppose that is being done just yet…
Once again, “a missed opportunity”…
Lesson: Despite the rhetoric from the new Administration…”Throwing $$ at a problem is quite different from creating REAL long term solutions”…
May 24th, 2009 at 2:09 pm
@Bruce in Tn
West Virginia is “darker” than Virginia is probably due to the fact that after you cross the Potomac or Shenandoah, the roads all collapse into “one lane highways”…
Friday night I was driving west on 340 (from Maryland – WVA, which crosses the Potomac at Harper’s Ferry on a single lane bridge)…The “bottleneck” started 4 miles before the bridge (and normally I don’t even have to change speed)…
The OTHER DIRECTION, there was no traffic (& there were no accidents either way)…
What to make of this?
Simply, it was a “holiday” weekend and people were escaping to the mountains for R&R…But the idea got me to thinking about that movie DEEP IMPACT (where the roads were all clogged from people trying to get away from the asteroid impact)…
But I’m just babbling here…I SEE DEAD PEOPLE
May 24th, 2009 at 2:18 pm
Looks like we’re losing another way to pay for “Infrastructure”
May 22 (Bloomberg) — Banks negotiating to reclaim stock warrants they granted in return for Troubled Asset Relief Program money may shortchange taxpayers by almost $10 billion if Treasury Secretary Timothy Geithner’s first sale sets the pace, data compiled by Bloomberg show.
While 17 financial institutions have repaid TARP funds, two have come to terms with the U.S. on the value of the rights to buy stock that taxpayers received for the risk of recapitalizing the industry. The first was Old National Bancorp in Evansville, Indiana, which gave the Treasury Department $1.2 million last week for warrants that may have been worth $5.81 million, according to the data.
If Geithner makes the same deal for all companies in the rescue program, lenders may walk away with 80 percent of the profits taxpayers might have claimed.
“For once we’d like to get a fair value when we come into contact with the banking system,” said Representative Brad Miller, a North Carolina Democrat and chairman of the Investigations and Oversight Subcommittee of House Science and Technology Committee. “We don’t want a ruthless bargain.”
Under the Old National warrants formula, Bank of America Corp. would save $2.03 billion, followed by Wells Fargo & Co. at $1.48 billion and JPMorgan Chase & Co. at $1.46 billion. Morgan Stanley’s benefit would be $983 million, Citigroup Inc.’s would come in at $965 million and Goldman Sachs Group Inc. would have $693 million, according to the data compiled by Bloomberg…
http://www.bloomberg.com/apps/news?pid=20601109&sid=ae2fQFMrDer4&refer=home
Gotta love it when a plan comes together..
btw, where all those A**holes that were in the MSM telling us that the ‘Cained Peep were “going to make money on TARP”? who, even, remembers that was said?
May 24th, 2009 at 2:26 pm
@ B in Tn: I hear you. I grew up in good ole KY. Go Cats. Remember Natcher from KY. He stayed so long to set a record they would wheel him into the Chamber on a gurney to vote.
But he brought the bacon home.
Yep. Looks like Good Ole BO is true to his word. Solving problems. NOT. Pretty much representative partisan-pull pork. Proof?
Bruce pointed out how anemic KY is looking. Well, hey, Mitch McConnell is now the Senator, not the Republican running the House during Bushie days. Care to guess how the KY map would have looked then.
And the “progressive” western states have pretty much loaded up the wheelbarrow.
Wonder what the $ per pop would be?
As said above, perfect display of what’s wrong and won’t get fixed.
May 24th, 2009 at 2:30 pm
@MEH
If I think I’m reading you correctly…
“Hasta la vista…S-U-C-K-E-R-S”
As I’ve been saying on this blog before…Many are wondering how long the equity markets will remain buoyant in this recent rally…
I’ll tell you…
The DAY that GS, MS, & JPM pay back the TARP, they all hit the SELL button in unison…
May 24th, 2009 at 2:50 pm
Federal transportation funding should not be allocated on a per-capita basis, as some would believe is “fair.”
The interstate highway system has a very high economic multiplier for the national economy when one takes into account the movement of goods within our borders. The rails tend to move bulk raw commodities, while the interstates move finished goods by truck. Federal highway money should be allocated where it has the highest economic impact – and these would most likely be interstate highways with the heaviest truck traffic.
Wyoming in particular has two (or three) major interstate corridors: I-80 east/west and I-90/I-25 north/south.
I-80 in particular is a road that is very heavily used by trucks, and in Wyoming, I-80 needs regular and very expensive repair. Winters are not easy in Wyoming and I-80 in winter is constantly being hammered by snowplows, trucks and cars with chains on their tires and frost heaves.
There are sections of I-80 in WY that are long overdue for major repair – in particular the section east of Rock Springs and west of Wamsutter.
Northern Nevada is much the same story – winter storms and heavy truck traffic punish I-80.
Contrast that to the project descriptions for Los Angeles County – the description makes be believe that there roads involved aren’t even federal in nature; they’re calling out surface streets in LA.
May 24th, 2009 at 3:59 pm
Geniuses who developed this shoot yourself in the foot plan and named it a stimulus.
8,999 MILES PER GALLON to pave 1 mile of road.
That should idle the economy when demand pushes gas to 4 bucks a gallon.
ABSOLUTE MORONS!
May 24th, 2009 at 5:42 pm
There’s not much meat on this bone, Barry. Judging from most of the comments I see here, that won’t stop the jackals from using the bogeymen that dwell in their own, fertile imaginations to fill in the blanks.
1. The link doesn’t work.
2. Is this associated with a story? How can any impartial, logical, intelligent person assess this data without knowing the methodology behind the map and/or the requirements of the American Recovery and Reinvestment Act’s transportation provisions?
May 24th, 2009 at 5:50 pm
@franklin411
Actually, that is a VERY valid point Franklin…(I know I come to blows with you a lot on this blog, but I say that in all sincerity)…
Time will tell…
But for now…there are only ANECDOTES…I supplied my own anecdotes in my own neck of the woods…Seriously I don’t know whether they mean anything in the grand scheme or not…They’re simply anecdotes…
In deference to your line of thinking…I’ll admit that I don’t think that “O” wakes up every morning and tries to think of ways to rape the American taxpayer…I really mean that…I’m just not sure whether or not his zeal, or wisdom is winning yet in the horserace…
I was thinking of that just this weekend…I pass by his RETREAT (Camp David) about twice a week in my shuffles between MD & WVA…
May 24th, 2009 at 6:06 pm
@Franklin411
…and the timing was interesting this time (Camp David)…I caught a glimpse of Marine One flying overhead while I was on the I-70 to 340 connection…
The last time I saw Marine One (in person – with my own eyes) was back in 1990 when George HW Bush was touching down for 9 holes of golf at Holly Hills CC (outside of Frederick, MD), where there is a covered bridge on the 6th hole named in his honor…
May 24th, 2009 at 6:12 pm
@MEH
You have to get onto this thread my friend…(come to think of it)
That way I can tell you about my “golf story” at Holly Hills CC (site of the above mentioned comment)…
It’s a classic!
May 24th, 2009 at 6:18 pm
@BR
Sorry BR…
I really don’t intend to stray too far off topic…But this is THE BIG PICTURE, right?
You yourself supply your “music” (herbs & spices) to the aromatic mix…do you not?
So ‘golfing’ & ‘fishing’ stories should be fair game as well…As well as ‘gastronomy’ and its inherent delights…:-)
May 24th, 2009 at 7:15 pm
@BR / whoever is running the site?
What’s up with this “Back to the Future” thread? It’s been resurrected from May 17th.
May 24th, 2009 at 8:21 pm
Well, speaking of transportation…now tell me again how the bailout of GM is not going to cost the taxpayer…speak slowly so I can read your lips….
http://www.bloomberg.com/apps/news?pid=20601100&sid=aXvogfC1VANo&refer=germany
‘Orderly Insolvency’ May Be Opel’s Best Option, Guttenberg Says
May 25 (Bloomberg) — German Economy Minister Karl-Theodor zu Guttenberg said an “orderly insolvency” for General Motors Corp.’s Opel unit may be the preferred option because none of the three bidders would take on enough risks.
May 24th, 2009 at 8:39 pm
Forget GM, Mish is quoting Chris Whalen as saying the Treasury’s going to have to use TARP to bail out the FR. There has been chatter on this blog, today, about the coming social unrest. Heads should role on Maiden Lane.
http://globaleconomicanalysis.blogspot.com/2009/05/feds-vice-chairman-admits-fed-has-no.html
“The numbers basically confirm that Treasury is going to have to take some TARP money and reimburse the Fed,” said Whalen, whose financial-services research company analyzes banks for investors. “It is essentially up to the Treasury to get the Fed out of this.”
May 24th, 2009 at 8:48 pm
Three cheers for President Obama and a victory for human dignity. Here is some good social news, though maybe bad for banks:
http://globaleconomicanalysis.blogspot.com/2009/05/obama-passes-tenants-bill-of-rights.html
Unbeknown to me, the despicable practice of “No Notice Evictions” came to a screeching halt on Friday when Obama Signed New Federal Law Protecting Renters after Foreclosure.
May 24th, 2009 at 8:54 pm
@Bruce in TN
My friend…I don’t need to tell you anything that you can’t figure out for yourself…Let me “bullet point” the FANDANGO…For reference, I was on the BODirectors for 5 companies during my tenure of 12 years in Italy…We had “intimate” knowledge of the financial positions of many major European conglomerates (which include the ill fated PARMALAT, OPEL, FIAT brands, as well as many others who played in their backyard such as PEUGEOT, RENAULT, & VW)…
BTW…My “tenure” as a BOD member was terminated in the 2005-2006 time period as my nominations were to the effect that they make a massive move towards CASH HOARDING & NOT TOWARDS EXPENDITURES FOR GLOBAL ADVERTISING…
Anyway…Brief history on Opel…
- GM acquired the Opel & FIAT brands by consequence of a STRONG DOLLAR (vs. what was to become EURO in late 90’s)…
- It was an idiotic and terrible investment, but WTF?
- Now GM is about to go bankrupt, Chrysler is already there, but Big “O” has signed off on the idea to let FIAT be the controller of Chrysler, give the UAW a major equity stake…Meanwhile – FIAT is all up in the face of the US district court to take USG $$ to help them with the deal, but deny Indiana bondholders of their claim…AND THE BEAT GOES ON…
May 24th, 2009 at 9:06 pm
@Bruce in TN
I just read my last post…
It occurs to me that what makes sense to me may not YET make sense to anyone else…
THE FIAT & CHRYSLER MARRIAGE IS A FRIGGIN’ JOKE AND IS A CLASSIC EXAMPLE OF HOW THE BIG “O” ADMINISTRATION DOESN’T HAVE A CLUE ABOUT ANYTHING…
FIAT is like a “double cat” ( it friggin’ HAS to have more than 9 lives)…
It should have been BK decades ago (save for intervention on a number of fronts)…
The latest INCARNATION is the SAVING of American jobs in the name of selling it’s Obama TINKER TOYS in the name of meeting his designs of NEW USA “cafe standards” …
It’s classic Tolstoy…Don’t research an issue, JUST GRASP THE FIRST LOGICAL STRAW & sell it to the gullible liberal public who is in love with you…
Don’t believe me…I’M JUST AN IDIOT FOOL…
May 24th, 2009 at 9:07 pm
Well, guys, as I’ve posted before, I’ve done most of my own investing for 30 years now, and even though an amateur compared with many on this blog, I have done just fine. My investments have been my salvation. I suppose, as a small business owner, that what bothers me most is that Obama took the Paulson game plan and expanded it. Yes, I see why some early on might have thought that with a credit crisis and deleveraging, that expanding the money supply and not letting any of the big bank except Lehman fail was the right path. But Obama has been in office now for 1/3 of a year…and he and his cabinet cannot help but see that we are becoming Japan. You can say what you want, but that is the simple truth. Zombie investment banks? How about Opel as a Zombie car company? Fiat has always struggled…these industrial behemoths are getting the same treatment as the IB’s ….zombiefication…
Anyway, I appreciate those on the blog who make their living doing this…it helps me every day to read your opinions…EVEN LEFTBACK’s!….
May 24th, 2009 at 9:23 pm
@Bruce in TN
I’m just happy to help a brother out…
As with EACH & EVERY sequence of ‘mathematical probabilities’…I’ll hold that the CHANCE that “you can teach an old dog new tricks”, OR, that “a leopard [or whatever animal] can or cannot change their spots…
But MY MATH instructs me that the safe bet is to bet against it…
I’m actually VERY PROUD to be able to relate to you all the EXPERIENCES that I’ve had (consequential or inconsequential as they may be) on this blog…
Take them for what they’re worth…THAT’S MY DISCLAIMER…
As for FIAT/CHRYSLER (the one that I can relate to most closely)…I can only say…”Grrrrrrrrrrrr”…
As for that, you have my preponderence of Opel…
Now…If we were talking about Porsche? At least THOSE managers know how to do business for the love of madonna!
May 24th, 2009 at 9:29 pm
Put a “period” on the last sentence of the last comment…
Porsche managers are like Goldman Sachs…
Maybe you HATE them…but you better NOT friggin’ bet AGAINST them for crying out loud!
May 24th, 2009 at 10:07 pm
BTW, I just noticed that “Idiocracy” is on Comedy Central. It’s at the halfway point. In much the same way that the Ghost of Christmas Future spoke to Ebenezer Scrooger, so this movie speaks to us about our possible future (snark).
May 25th, 2009 at 12:18 am
lovely – the higher population the less infrastructure (projects) is needed. I guess the logic – we (ny metro) can walk to work.. AK – can’t – too far..
May 25th, 2009 at 1:02 am
“BTW, I just noticed that “Idiocracy” is on Comedy Central.”
That’s an interesting film which fizzles badly about halfway in but the first half hour or so (the set-up) is absolutely brilliant. Mike Judge of Office Space fame, right?
May 25th, 2009 at 8:10 am
What happens after more empty buildings are completed? Another stimulus plan to build more empty buildings?
—————————
Then you’ll open your doors to immigration… got to get more people to pay SS.
And you’ll see that most of those will be muslims, tens of millions of them…. not sure US was banking on this!
May 25th, 2009 at 8:43 am
@drey 1:02
Yes, Mike Judge. I don’t know about the fizziling, I caught the second half last night and it felt like the Fall of 2008. Seriously.