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Kentucky is going to build an equestrian arena

And a lot of other things, too—like a healthcare research facility at the University of Louisville, science labs at Western Kentucky University, and water and sewer lines in rural communities—because it was able to sell $400 million worth of municipal bonds on Tuesday.

This is great news, considering that the muni market had pretty much ground to a halt. Kentucky was one of the first states to get back out there in a big way. Yesterday I was talking with Jonathan Miller, Kentucky's secretary for finance and administration, who explained what an emotional rollercoaster ride the muni market has been of late: "We were very nervous about this, and then the bailout passed, and we were relieved, and then the market tanked again. We were really worried—we had encountered a lot of pessimism and skepticism that we'd be able to sell these bonds."

Now, of course, he's glad that they did, not just because of the small role Kentucky played in restoring a modicum of confidence to the market (after Kentucky floated its bonds, Ohio immediately followed), but also because it's not such a bad time to be plowing money into public works projects. Like states around the nation, Kentucky is seeing signs of a slowdown—tax revenue was off 5% in September, compared to the same month last year—and nothing says Keynesian response better than building a bunch of new buildings and sewer lines.

UPDATE: Here's why I was talking to Jonathan Miller.

Barbara!

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  • 1

    Barbara!,

    We can only hope for many more projects like this to include: bridges, roads, inter-city rail expansion, expansion of schools, investment in universities, etc.

    We won't see the benefit for a while, but like building a good house...it always starts with a solid foundation.

  • 3

    i want dibs on calling bottom (only if i am right tho, if it proves to be wrong i ain't ever said nothin)

  • 4

    T.A.D.,

    You've got dibbs. Although, I think we have a ways to go....like after the next stimulus plan next Feb. sponsored by President O.

    Barbara!,

    You're gosh-darn right I like it. To ultimately fix this economy, we need a force multiplier.

    Too much of America is too inefficient. We need to get people to work faster, safer and more efficiently, graduate more educated students, and make jobs in industries to replace our car industry and other traditional manufacturing bases. The answer to stabilizing housing prices is to create jobs providing income so that people can pay down their debts and buy homes to bring supply and demand back into balance. And I might add, this wouldn't be a bad time to increase the number of people coming into the country as immigrants with desirable skillsets. Hello!! Russian scientists, Swedish chemists, etc.

  • 5

    @Bryan, while I personally agree with you on the immigrants with desired skill sets, I suspect that many of my computer science/software engineering colleagues might just want to string you up from the nearest tree for those sentiments.

  • 6

    Curmudgeon,

    Not trying to get strung up....but what I am talking about is the government not only hiring all of you computer science/software engineering types of the US but also skilled others from around the world as well and putting them on the government payroll doing some type of Manhattan Project.

    Right now, we are in a global financial war and we are losing in my opinion because we have been unable to create a game-changer (sort of like the bomb was used in Japan). The difference is that by starting a process of developing smarter batteries, more efficient transportation systems, improving roads, bridges, schools, etc....we would begin to rebuild the engine that will propel global prosperity.

    The fact is that the truth is that when the US sneezes the rest of the world is catching a cold. It is up to us (the US government, in particular) to get the engine fired back up and the transmission back online so that we can get our economic vehicles out of the ditch.

    That's what I am talking about. People are sitting around watching Paulson, Helicopter, Obama and McCain saying save us, save us. They need to be telling Pelosi and Reid...put together some Manhattan style stuff and Bush sign it and get busy, but we'll soon have the calvary there to replace you in D.C. in short order.

    It is time to get serious and start treating a crisis like a crisis. McCain is talking about a "steady hand on the tiller" while the ship is taking on water. We are rapidly approaching the height of absurdity. I admit that I support Obama, but one man will not provide salvation. The problems are too big and the effort required is too great. It is time for this nation to rise up, take action and seize greatness or we shall go out with a whimper and be doomed to failure.

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