Sunday, December 22, 2013

A Paragraph to Ponder

From Bloomberg Businessweek - States Roll the Dice on Highway Traffic (December 16, 2013):

"Traffic forecasts done by consultants for states and investors have long proven overly optimistic.  The first-year revenue of 26 public and private toll roads that opened form 1986 to 2004 averaged one-third less than projected, according to a 2009 analysis of federal data by Robert Bain, a transportation consultant.  U.S. miles traveled peaked in 2007 at 3.03 trillion,, then declined 2.5 percent through 2012, according to the Federal Highway Administration.  "You never see a consulting report be negative or else they won't be able to sell the bonds," says Howard Cure, managing director of municipal bond research at Evercore Wealth Management."

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