|reply to skeechan |
Re: Makes one wonder..
The bonds are paid back by the revenues created by people buying services. I don't know how the bullet trains are financed but revenue bonds are typically used in these muni bb networks. There have been a few cases where the revenues were less than forecast and there is a potential at that point that public money would be used to make up the difference, but this starts to get into specifics that vary from community to community.
Infrastructure so expensive and prices they plan to charge so low, I wouldn't think that revenues alone would cover paying back the bonds.
Bonds are an investment risk unless they are government guaranteed. Usually they are not guaranteed so if the business makes no money then the investors make no money and their bonds could very well become worthless if the business fails.
Are these guaranteed bonds? I personally dont care and think it is good and wise for virtually all communities to do this.
They may be revenue bonds in which case I'd be nervous about holding them.