Robert Ley says:
October 6 2017 at 11:56 am
This sounds like an idea which is crying out to be revived.
What rates of return do you envisage the bonds paying, and what mechanism would be provided for local investors who wanted to buy or sell once the bonds had been launched ?
One point of contention you might find being raised by certain ‘regulars’ is identifying how the capital amount borrowed by the Authority might be repaid if it is spent on illiquid assets such as housing, recreation spaces or air quality improvements, as your correspondent suggests. But I would imagine this could be reclaimed via taxation ?
Richard Murphy says:
October 6 2017 at 12:12 pm
I think bonds should be long term
And it should be assumed they roll over
OK. So, taken to the extreme these are perpetuals with no secondary market. How high is that interest rate going to have to be?