AIG failure may cause public transit bankruptcy

I just heard about this today.

Basically the transit systems across the country were doing a form of legal tax evasion and are now getting screwed by the fine print. AIG was the backer of all these deals and they fell below a certain rating and now all the debts must be paid back along with early term fee's.

The transit systems have no money to pay back the banks and because of this may end up going bankrupt.

cbs5.com...

Here is an article that gives better detail. This could be a major impact to society if we lose a large portion of public transit. And of course they are now joining the rest of America with their hands out for a bail out.

*Note to self- do something that takes no moral's and screws everyone over so that I can get a huge amount of money in a bailout.

[edit on 21-11-2008 by whoshotJR]

reply to post by whoshotJR

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gotta love it, the crash is coming, hold onto your hats

Wouldnt we want to help out Public Transit before we help out other companies. Since we take the Public Transit to get places, work, home, and store.

I would think public transit would be of major concern also.

I'm still curious how our public transit companies were allowed to sell of their rail cars to banks local and over seas and then the banks leased them back to them. All this was done so that both could avoid paying taxes and then it gets backed by AIG who just happens to be corrupt as all hell.

Aren't some public transits funded by local taxpayers, and mostly 'fare' fees??? I mean, our bus tickets have gone up in price SO much lately, it's insane...

privatization of public services in a nutshell killed public services for the benefit of the few..ah the joys of capitalism



[edit on 21-11-2008 by warrenb]

I guess i'm not very creative but I'm having a hard time wrapping my brain around what it would be like if the trains and bus lines stopped working.

It seems to me this alone would cause a gigantic ripple effect and shut down many business' and towns. That then could ripple and effect the world economy because if people cant go places to work or buy things it effects everyone.