Ironically or perhaps prophetically, the California High Speed Rail Authority's Web site bolsters the economic viability of a proposed statewide bullet train system by quoting an official of Lehman Brothers.
Lehman Brothers was the CHRA's original financing consultant and Barbara Lloyd of the firm is quoted on the Web site as saying the California project could "leverage significant private participation."
Lehman Brothers knows a lot about "leverage," having wagered billions of investors' dollars on mortgages, especially those in California, that blew up, forcing the firm into bankruptcy a year ago and triggering a global financial meltdown.
If nothing else, the fact that CHRA is still quoting defunct and disgraced Lehman Brothers about financing the bullet train should make us skeptical that the system will actually materialize in the lifetime of any Californian now breathing, or that it would generate all the economic and social wonderfulness its advocates are claiming.
Such skepticism is especially warranted now that Gov. Arnold Schwarzenegger and other promoters, having persuaded voters to pass a $9.95 billion bond issue that California can ill-afford, are asking the Obama administration for half of the federal money set aside for high-speed rail nearly $5 billion.
Even if the feds come through with that kind of dough, it would be less than half of the federal funds that California needs and still fall well short of the $40 billion or more it would take to actually link San Diego, Los Angeles, San Francisco, Sacramento with 200 mph trains.
Grandiosely, CHRA board member Rod Diridon Sr. of San Jose contends that the project "will generate 600,000 construction-related jobs and another 450,000 transportation-related permanent jobs, providing a long-term stimulus to the California economy."
The claim appears to be way overblown, but even if true, would represent a tiny portion of California's economy decades hence. There are about 18 million Californians in the work force now, and in 2030, when the bullet train is projected to become operational, 450,000 permanent jobs would represent less than 2% of needed employment.
A few rules are needed to help foster a feeling of community. We encourage a free and open exchange of ideas in a climate of mutual respect, but any post that violates someone's right to use and enjoy fresnobee.com is prohibited. Before you post, please read the terms of use and obey these simple guidelines.
Here are the ground rules:
Contents of this site are © Copyright The Fresno Bee. All rights reserved.
E-Mail
Print
@Nyx.CommentBody@