End game for America’s jobs
America will never recover if we outsource everything, including our public infrastructure. Bloomberg made the excellent video above about California outsourcing the construction of a portion of the San Francisco Bay Bridge to Shanghai Zhenhua, a Chinese firm. Shanghai Zhenhua is assembling the section and will then ship it to California for installation. The state is supposedly saving $400 million with this move. The workers at the Chinese facility are making $12 dollars a day.
In times of fiscal stress it’s easy to understand why public entities are trying hard to cut costs. But this “cost cutting” is really just off-shoring American jobs. Something has to give — we can’t recover without creating American jobs. It’s our choice, and I choose spending more and creating jobs at home.
Background on the project from Bloomberg.
Hungry market gobbles up new municipal bonds
The week’s new inventory can’t seem to reach the muni market fast enough. One trader in Florida said there is little product anywhere. “There are fewer bonds than usual,” he said. “It’s hard to find anything to sink your teeth into.”
Muni yields have been following Treasuries lower. But they aren’t too low for the market to absorb the new volume, wrote Tom Kozlik, a muni credit analyst for Janney Capital Markets.
Rhode Island city near collapse
It’s an ugly end game for Central Falls, RI. The New York Times reports that the city’s money is gone and they owe a lot to retired firemen and policemen: