Wednesday, January 14, 2009

Olympic Village Boondoggle: The Eleven Percent (non)Solution


I dunno about you, but I was shocked when Miro Cernetig suggested last week that Fortress was getting something in the order of 'eight percent or more' per annum on the money it's already on at least $200 million of the loan that we, the Citizens of Vancouver are apparently on the hook for already

But yesterday Rod Mickleburgh, in the Globe piece that wasn't written by Gary Mason, slipped in the following bombshell that few seem to have noticed:

"Gaining extra borrowing powers would give the city a chance to seek alternative funding at a better rate than the 11-per-cent interest Fortress is charging on the $317-million it has advanced to date, and thus reduce financing costs....."


Freaking Eleven!!!

Who do the Hedgie Boys think they are?

Nigel from Spinal Tap?

And if we are getting stiffed with eleven
when our credit rating is A+ up the wahzoo, what the heck is going to happen if the rating is downgraded?.....And don't give me that codswallop about how the downgrading wouldn't have happened if only everybody had kept quiet because, I for one, do not want to be a citizen-participant in a local version of a Madoffian-like Ponzipalooza....Now that it's all coming out, it sure would be interesting, given the timing of it all (eg. Sept 2007 to early 2008), if somebody were to ask Peter Ladner if, perhaps, the looming spectre of the Boondoggle Rising was the real reason he jumped in to put an end to Spamalot.


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