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shizzyfinn

shizzyfinn is a Reader contributor. See staff page for published articles.

Is Moores Jumping Out Just in Time Again?

The Chargers must be kicking themselves for trying to squeeze more blood out of the San Diego turnip instead of jumping ship before the financial mess hit. Ain't no way this city is going to be paying for a stadium any time soon, and given the economic crash, public subsidizin' is a lot less likely to happen elsewhere, too. So if a new stadium is still the goal for the next few years, the team likely would have to pick up its own tab. What a concept! When it comes to the personal seat license deal, I don't have any objection. Owners of businesses should have the right to set prices as they wish. Of course, it does strike me as rather crass for teams to extend middle fingers to fans who supported the teams for years. I happened to be at this year's home opener of the New York Giants, who are going to a new PSL-heavy stadium next year...one of the team's owners took to the field at halftime to give a speech to the crowd over the PA...and his entire spiel was drowned out by boos. And given the new zeal for thriftiness that seems to be sweeping America, this seems like a tough time to start catering exclusively to wealthy clients. For example, the New York Jets will be playing in the same new stadium as the Giants, and in October, the Jets held an online auction for a small slice of the PSLs. Management has spun the auction as a success, but it is telling that, just prior to the auction, the number of auctioned seats was scaled down by 2/3.
— January 15, 2009 4:09 p.m.

Andrea Tevlin, San Diego's budget analyst, too busy to talk

I'd say the author of post #1 is on to something, at least sort of. True crisis only hits pension plans when obligations must be paid but there isn't enough money in the kitty. Luckily, the City has some years before inability to pay becomes an issue - and in the interim, high inflation could very well come to the City's rescue. Inflation screws lenders (like employees who are owed pensions) while helping debtors (like pension plans) by reducing the real value of the money owed. If inflation ratchets upward significantly in the US over the next few years - which economic theory says it will, given the mind-boggling amount of Gov't spending going on right now - nominal prices of the City's pension assets will climb big time, while the City's obligations to pensioners stay flat. Voila, funding levels up, and insolvency avoided. Of course, the losers are the City retirees. They will still get their pensions of $30,000 or $50,000 or $80,000 a year. But by then, McDonalds employees will be making $100,000 a year, and Big Macs will cost $400 each. In fact, this is the scenario that will likely unfold across America in the years ahead. Inflation will enable us to pay all the bills out there, from mortgages to the national debt. But at the same time, it will eat away our purchasing power relative to our counterparts in India, China, and everywhere else. So enjoy your I-Pods and your Escalades while you can, folks!
— December 4, 2008 1:50 p.m.

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