In past
Dispatches, we've highlighted the potential and actual taxpayer ripoffs hidden in the industry siren song of selling off public assets like highways. States gets what looks like an attractive upfront payment, but lose in the long-term from lost toll revenue and lost democratic control of transit decisions.
The credit crisis has undermined the financial players who had been leading the charge on privatization, so they are looking for a bailout under the federal recovery plan. As
reported by Reuters, Morgan Stanley, Merrill Lynch and a number of other firms pushing "public-private partnerships" -- the industry's preferred euphemism for privatization -- wants part of the stimulus package to flow to them. Their wish list includes federal rules to push privatization of airports and highways, along with a national infrastructure bank to subsidize loans for private sector deals.