Thursday, June 4, 2015

John Hammer is financially illiterate

"Hartzman claims to be a financial advisor,
so perhaps the Finance Department should hire Hartzman
to consult on the city’s investments.

He once spoke against a loan the city took out
at an interest rate of 0.01 percent
because it was a variable and not a fixed rate.

How much more does it cost to lock in a good long term rate
than be stuck with a much higher rate after interest rates rise
by keeping short term debt payments low
so the City can borrow even more under the debt payment cap
all of which may likely be locked in at higher long term rates?

And that rate is not a typo,
the city borrowed money at one-hundredth of one percent
and Hartzman found fault with that."

John Hammer

A great deal of intelligence can be invested in ignorance
when the need for illusion is deep

Saul Bellow