3 ms·
It's not just the cost over time, it's the availability of capital in large clumps - also known as "the cost of being poor:" It may be 5x cheaper in the long ru
by roughly 5y ago
It's not just the cost over time, it's the availability of capital in large clumps - also known as "the cost of being poor:" It may be 5x cheaper in the long run to pay 3x the cost today, but if you don't have 3x the cost today, well, good luck.
- JumpCrisscross 5y agoCapex <=> Opex swaps are pretty common, and it's not just a matter of poverty. (It's why airlines lease their planes.) Swap "subscribe" with "lease" and this article becomes less interesting.
- roughly 5y ago> Swap "subscribe" with "lease" and this article becomes less interesting To VCs, too
- anonymouse008 5y agoYeah, and school's budgets are cash tight, with comparatively little ability to fundraise, so any large cash transaction will be DOA. The swap should take place, and I'm now wondering why this hasn't occurred.
- mywittyname 5y agoSchools often issue bonds to cover large purchases. Plus, sometimes states/fed will toss them grants.
- Mountain_Skies 5y agoIt's interesting to see how different bond proposals are received by the public. In the more conservative areas I've lived, adding a penny to the sales tax to fund school bonds is pretty much always approved by the voters and renewals are likewise rubberstamped. In liberal areas, that's a much more difficult tax to get passed, mainly on the grounds that it is regressive. School bonds secured with increased property taxes tend to work in the reverse, with property tax increases being popular in liberal areas but opposed in conservative ones.