Now that it appears that the Build America Bond program may end up being pulled in just two short weeks, those who are most reliant on the program for their continued existence are starting to not only crawl out of the woodwork, and make their voices heard, but pull the usual trick of threatening with cataclysms unless they get what they want. Sure enough, enter California Treasurer Bill Lockyer. Per Bloomberg" “Allowing the BABs program to die would undermine the economic recovery and harm taxpayers and working families across the country,” Tom Dresslar, spokesman for California Treasurer Bill Lockyer, said yesterday by telephone. And the justification: taxpayer cocaine is the best damn cocaine money can buy: “I know that stimulus has become a dirty word but you’d be hard-pressed to find an economic recovery program that has worked better.” And that is all that is needed to convince the masses of corrupt politicians: after all as Neel Kashkari made it all too clear both 2 years ago, the world will end unless bankers or their administratively placed cronies get anything they need to maintain the ponzi on their behalf. And lastly let's not forget that the biggest beneficiary of the BAB program is none other than PIMCO...which is incidentally where Kashkari gets his paycheck currently.
More from Bloomberg:
The U.S. Senate kept a continuation of the Build America Bond program out of a bill to extend income-tax cuts made in 2001 and 2003, according to a draft of the legislation.
The federal subsidy for debt to finance bridges, roads and other infrastructure wasn’t among changes made to win support for the measure, the text released last night shows. The subsidy pays 35 percent of the interest on qualified state and local government bonds. At least nine Democrats sought to attach an extension of the program, which ends Dec. 31, to the tax bill.
The failure is the latest in efforts to keep the Build America program going for at least another year. The prospect of its end has weighed on the $2.86 trillion municipal bond market as public officials have rushed to borrow money at subsidized rates and as investors expressed concern that traditional tax- exempt debt issuance may surge next year.
Of course, at some point, someone, somewhere will need to take the first austerity pill. And we are firmly convinced it will not be California whose massive insolvency will come to a prompt head the second it becomes clear a brand new multi-billion taxpayer gift is not in the cards for 2011.