Question
Using Deutsche Bank reduces the upfront need for taxpayer funds for this project, however, there will be the need to pay back this loan with
Using Deutsche Bank reduces the upfront need for taxpayer funds for this project, however, there will be the need to pay back this loan with interest.
As you can see on the attached image - courtesy of Greenlaw and Taylor - financial intermediaries use interest paid on loans to pay interest on other accounts they hold (and profit, generally speaking).This should remind everyone of my favorite overused economics saying - there's no such thing as a free lunch. This project is arguably very important for Atlanta area residents, however, how will the cost be managed?Increasing taxes or re-evaluating current state budgets may lead to cuts to programs or individuals who would never use this system footing some of the bill!
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