Monday, June 20, 2011

A Lesson from Vanity Fair

What eventually happens when you over borrow, promise more benefits than the future can afford, let the insider bro deals and minor corruption go without response and turn the government sector in the the wealth class? Vanity Fair has the answer.

1 comment:

  1. Does Jerome Stocks read Vanity Fair along with the Wall Street Journal?

    There's one line on page 15 that says it all:

    "Any future stream of income that could be identified was sold for cash up front, and spent."

    This sounds like the Lease Revenue Bonds for the Hall property and the library. However, there was a problem: neither project had a revenue stream to pay the debt. The money to pay back the debt had to come from somewhere else.

    Father Kerry, along with Brothers Jerome and James, figured the General Fund with help from the water and sewer districts would do the trick. Oops, the GF dried up and the state clamped down on raiding water and sewer districts.

    Now there is nothing else to monetize, so our city is begging for cash handouts from others. Will the Patrons of Encinitas Parks be the Germany that rescues the city?

    Father Kerry fled the city is 2006. It doesn't look like Brothers Jerome and Bond have the smarts to continue to game the system.

    ReplyDelete

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