Today's SP reports that Standard and Poors gave our city a triple A credit rating with a few flags. Good news. Then I recalled that Standard and Poors gave Lehman Bros and others a great rating just prior to the USA financial collapse.
What caught my attention was the comment that the Saskatchewan Municipal Board may soon increase our debt limit from the current $298 million amount.
Just how deep in debt are we and how deep does council intend to go?
How will we pay increasing debt when we have six councillors that promised no tax increases during the election campaign?
My beef is that something smells fishy.
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Some seem to think that just because you have a good credit rating it gives the green-light to borrow more.
ReplyDeleteDuring the election I used the following analogy more than once when discussing how much we have borrowed as a city over the past six years:
Just because the bank was willing to lend my wife and I $500K for a home doesn't mean we should buy a $500K home.
Nice to see that Civic Mistress "remembered" the Lehman Bros credit rating parallel one day after it was already brought up on David Hutton's blog...
ReplyDeletehttp://communities.canada.com/SASKATOONSTARPHOENIX/blogs/cityhall/archive/2010/02/25/city-s-credit-rating-reaffirmed-by-s-amp-p.aspx
Where in Hutton's blog do they mention Lehman brothers? I am not implying the Mistress is off the hook, but I didn't see it when I read?
ReplyDeleteIn the comments section - Tiny A posted "Standard and Poors also gave Lehman Brothers an "A" rating three months before they collapsed..." the day before Civic Mistress miraculously made the same observation.
ReplyDeleteHahahahahahaha, you mean to tell me your plagiarism allegation is made based on a comment made in a comments section of seldom blog?
ReplyDeleteDoes this mean that if I ever hear any reporter mention Saskatoon and Lehman Brothers together in the same sentence they must cite the Tiny A?
You are too much Anon, get a life.