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What if we ultimately get a huge infratructure stimulus in the US and elsewhere


DamienC
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While governments will try to sit on Central Banks back as long as possible they ultimately will have to act.

 

We all know that the US and some other countries are in desperate need of a huge program of public infrastructure upgrade so if/when it happens, which companies will profit most from it.

 

Those programs will probably be implemented near the end of the next recession.

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While governments will try to sit on Central Banks back as long as possible they ultimately will have to act.

 

We all know that the US and some other countries are in desperate need of a huge program of public infrastructure upgrade so if/when it happens, which companies will profit most from it.

 

Those programs will probably be implemented near the end of the next recession.

 

Trump is a developer.  That wall with Mexico is going to take a lot of bricks -- good for Berkshire.

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Hey all:

 

Here in S.E Michigan, everything is literally crumbling & falling apart.  This is no joke...

 

There are also tens of thousands of houses/buildings that need to be torn down.

 

The roads are easily the worst in the country.  Many bridges/overpasses are literally falling apart.  They have netting attached so that if a piece falls off, it wont' damage a vehicle pedestrian.  I've also started to notice wrappings around support pillars too.

 

I also have a friend who is an engineer in the water works for the city of Detroit.  He says that a shocking percentage of water mains/pipes are 100+ years old.  Some of these things were supposed to be replaced 30 years ago.

 

So you've got a post-apocalyptic landscape with crumbling roads and water/sewer pipes.

 

You could have an army of 10,000 workers in the tri-county area working non-stop for YEARS to fix the infrastructure.  Yet, unemployment remains very high here.  I just don't get it...So much work NEEDS to be done, but we've got so many people just laying about...

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Hey all:

 

Here in S.E Michigan, everything is literally crumbling & falling apart.  This is no joke...

 

There are also tens of thousands of houses/buildings that need to be torn down.

 

The roads are easily the worst in the country.  Many bridges/overpasses are literally falling apart.  They have netting attached so that if a piece falls off, it wont' damage a vehicle pedestrian.  I've also started to notice wrappings around support pillars too.

 

I also have a friend who is an engineer in the water works for the city of Detroit.  He says that a shocking percentage of water mains/pipes are 100+ years old.  Some of these things were supposed to be replaced 30 years ago.

 

So you've got a post-apocalyptic landscape with crumbling roads and water/sewer pipes.

 

You could have an army of 10,000 workers in the tri-county area working non-stop for YEARS to fix the infrastructure.  Yet, unemployment remains very high here.  I just don't get it...So much work NEEDS to be done, but we've got so many people just laying about...

 

And debt issues to hire them can be monetized without any real worry of inflation. A real shame.

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I would personally support a massive infrastructure stimulus.  Unfortunately, I'm pessimistic it would happen until there is some massive calamity.  The public is far too short-sited.  I live in the Minneapolis area.  Even after the I35 bridge collapsed, the state reportedly still has over 800 "structurally deficient" bridges, yet policy makers kick the can down the road every legislative session. 

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It looks like the Canadian Federal Government is going to go ahead with some major infrastructure investment. 

 

I would think any business would do well.  Infrastructure spending should put some pressure on borrowing and defaltion as well.  I dont see any indication the US government is going to go this direction, at least for a year.  It looks like the have abdicated any resposibility to the Central Bank. 

 

Maybe if you guys elect Trump..... 

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$10Bish of infrastructure won't push the needle for an economy the size of Canada.  When do you think a shovel will hit the ground?  My bet is 2-3 years from now as they have no sense of urgency. 

 

It looks like the Canadian Federal Government is going to go ahead with some major infrastructure investment. 

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I thought that the $800 billion stimulus at the beginning of the Obama administration was about shovel ready/infrastructure type projects?

 

Seriously, government led infrastructure projects are prone to massive corruption as was seen everywhere around the world: contractors colluding among themselves and with the help of some corrupt government officials fixing the bid process. The designs also led by the government do not always match the needs and you often see this "architectural artist type creativity" built in it. Then long term maintenance is obviously not taken care of seriously. Why is everything falling apart? Because new projects are often entered into to please the population while no serious consideration is paid to maintain them in the future.

 

I do believe that we should privatize a lot of infrastructure. When firms do compete to offer the best ideas, at the lowest cost, then I think that the government and people win. Obviously, selection should be highly monitored to ensure a fair process. Strong conditions around maintenance, viability of owner, etc.

 

On the capital side, it makes the economy work better since banks, investors and others get involved to bring in what is necessary. There is a lack of demand for loans in the economy then, there you go. A better process IMO than the government issuing bonds.

 

The other advantage is capitalism at work or if something is not worth being built because it will never repay itself via enough usage, then it does not get built. Some are concerned about tolls and the like but, a city could also choose to use its tax revenues to pay a fee each year to the bridge owner for example.

 

Hwy 407 in Toronto is a big success IMO and I do believe that many many other examples could see the light of day if we give them the chance. You would be surprised how fast the first hyperloop could be brought into service with the private.

 

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Hey all:

 

Here in S.E Michigan, everything is literally crumbling & falling apart.  This is no joke...

 

There are also tens of thousands of houses/buildings that need to be torn down.

 

The roads are easily the worst in the country.  Many bridges/overpasses are literally falling apart.  They have netting attached so that if a piece falls off, it wont' damage a vehicle pedestrian.  I've also started to notice wrappings around support pillars too.

 

I also have a friend who is an engineer in the water works for the city of Detroit.  He says that a shocking percentage of water mains/pipes are 100+ years old.  Some of these things were supposed to be replaced 30 years ago.

 

So you've got a post-apocalyptic landscape with crumbling roads and water/sewer pipes.

 

You could have an army of 10,000 workers in the tri-county area working non-stop for YEARS to fix the infrastructure.  Yet, unemployment remains very high here.  I just don't get it...So much work NEEDS to be done, but we've got so many people just laying about...

 

why would we as a country invest years of infrastructure development into an area like southeast michigan?  No offense (I'm from rust belt myself), but population is already very low and in decline there.  "bridge to nowhere" comes to mind. 

 

Investing in rural and non-coastal areas doesnt make sense when the population is trending away from those areas.

 

Think about it if infrastructure were privatized...If you managed a private infrastructure company would you want to invest in toll roads/bridges/utilities in SE michigan or Florida?  Or California?  Or NYC?  Or Jersey?  Or Washington?  Or SC/NC?  Or just about anywhere else? 

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"Think about it if infrastructure were privatized...If you managed a private infrastructure company would you want to invest in toll roads/bridges/utilities in SE michigan or Florida?  Or California?  Or NYC?  Or Jersey?  Or Washington?  Or SC/NC?  Or just about anywhere else?"

 

You let the rate of return dictate where it gets invested. I am sure there is no problem to find a buyer for the Ambassador Bridge in Detroit. Cost in NYC or California will be sky high which will impact the viability of any project.

 

If a city has no more plants and businesses, it will die anyway if you stop the welfare. People will go where they can survive and hopefully thrive. The land will return to agriculture.

 

If that place is so special due to its environment or something, then tourism will show up. If it is a wasteland, then that is likely what it will remain.

 

At the end of the day, it is the people as a group who decide where they want to live. What is the point of making a city top notch when only few "want" to be there and future viability is invisible as far as the eye can see? Towns and cities have closed in the past. Sad but, just how it is.

 

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