O'TOOLE: 'Trannie Mae' and special interests

From the Washington Times - Commentary by Randal O'Toole - President Obama's proposal for a transportation infrastructure bank has been lauded as a way to bring "rationality" to federal transportation spending. In fact, such a bank - call it "Trannie Mae" - will just increase the politicization and reduce the effectiveness of transportation dollars.
A real bank lends money for projects that are likely to cover their costs and repay the loans. Many of the projects Mr. Obama wants the new "bank" to fund, including high-speed rail and rail transit, will not see a single dime; they won't cover their operating costs, much less the capital costs of the projects. So much of Trannie Mae's money will have to be in the form of grants, not loans. Read more


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