Be Careful Coral Gables, The Future is Very Uncertain–No Time for More Debt

June 1, 2011 Leave a comment

Le’t hope that the commission and city manager of Coral Gables think hard again about the city’s economy and the need for more debt at a very uncertain time.  Paciencia!

Even the optimists are nervous about the next few months. It’s possible that some of the gloomy data reflect excessive caution ahead of several key events: The end of the Federal Reserve’s asset purchases, the resolution of the U.S. debt-ceiling soap opera, the resolution of Europe’s fiscal disaster, and the ability of the developing world to achieve its soft landing.

If all of those go well or even just OK, the future might look a little brighter at the end of the summer. And if they don’t? We may look back on this spring with fond memories.

via Will the economic slump last? MarketWatch First Take – MarketWatch.

Filed under Budget, Coral Gables, Government, Housing, Property Values

And The City of Coral Gables Going In Debt!

May 31, 2011 Leave a comment

The irrationality of the city manager’s proposal and the commissioners’ approval of a new spending and debt package for Coral Gables is now crowned by the persistent double dip in housing prices across the country.

The blind push for spending and debt, sacrificing taxpayers and employees in the process, is a hugely disappointing outcome of the recent election.

The ominous new drop for the Standard & Poor’s/Case-Shiller index of 20 cities, a key measure that is closely watched by economists, casts further doubt about the future of the housing market’s recovery. The index pushed below its previous bottom hit in April 2009, confirming a much-feared double-dip in home prices.

via Case-Shiller home-price index hits new low – latimes.com.

Filed under Coral Gables, Property Values

City of Coral Gables Refinancing Not Urgent–See Economic Report

May 27, 2011 Leave a comment

It has been reported that the GDP growth report rate in the first-quarter is a miserly 1.8 percent.  There is absolutely no pressure for having higher interest rates in the foreseeable future.

Even if the city were to pay to a few thousand dollar in penalities, that does seem to justify taking on debt that hits us with $2 million annually for the next 20 years.

Does anyone look at the alternative uses of money in the city of Coral Gables?  Has anyone take a first year course in economics?  Let’s take our time and consult with the citizens about spending $22 million.

ECONOMIC REPORT

via First-quarter GDP growth remains at 1.8% Economic Report – MarketWatch.

Filed under Coral Gables, Economy, Finance

Krugman’s Notes Should Be For Coral Gables

May 26, 2011 1 Comment

Let soothsayers of good times ahead–including city managers who are speeding up investments and refinancing debt–recognize that we are not slipping out of a recession and we may be slipping back into a recession.

Put together

  • declining property values and revenues for the city of Coral Gables,
  • resistance from unions to accept really important sacrifices,
  • new city debt and ambitious capital program (admittedly, some of which may essential maintenance of city infrastructure),
  • a faltering Biltmore lease,
  • a faltering, sickly real estate market,
  • sluggish retail sales, and
  • candidate promises of no new taxes
and you may get continuing financial weakness and more taxes in Coral Gables.
We note now that

…estimates now suggest that we have now gone through a year and a half of “recovery” that has failed to make any progress toward closing the gap between what the economy should be producing and what it’s actually producing.

via Third Depression Watch – NYTimes.com.

Filed under Business and Commerce, Coral Gables, Finance, Taxes and Fees

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