locally globally

State and local government budgets are being hammered across the country and much of the response has not been well thought. One of the first things to get quashed has been public transit spending. In a culture that is dangerously dependent on oil and needs to remove itself from that dependency for future economic/environmental vitality, it's just not smart. For example, Santa Monica city council is thinking of doubling the bus price:

Big Blue Bus officials have suggested either doubling the base fare from 75 cents to $1.50 per ride or increasing it to $1.25. The fare increases would generate between $3.4 million and $4.2 million in added revenue for the bus system, which is facing a $7.2 million deficit, according to a City Hall report.

The increases would affect the arrangements that both SMC and UCLA have with the bus system, resulting in about $700,000 in extra expenses for the two schools combined, officials said.

UCLA pays the bus system about $700,000 per year so qualifying students can ride the bus for the discounted rate of 25 cents per ride.

That's just plain stupid. We should be spending money on public transit. Every dollar of public transit debt is a good investment.

In a related matter half-way across the globe, Operation Iraqi Oil(OIO, that's pronounced oyyyy!!) Muqtada al-Sadr, while not gaining the most votes, has proved the biggest winner in the recent elections. Seems one of the things Saddam was doing was under-counting the mass of impoverished Shia growing in Baghdad and other cities. The thing to remember is about four months into the occupation, the US army tried and failed to take out Mr. Sadr, people tend to remember when you try to kill them, some will even hold it against you.

Meanwhile, in the growing warfare of global finance, there seems to be a growing consensus that the Greek solution was no solution at all, just "extend and pretend" on an international level. In one of the funniest things I've read in a long time, Wolfgang Munchau(tx yves) thinks the whole thing's a ruse and advises the Greeks:

Under these circumstances there may come a point when the Greek government concludes that default is the financially superior option, especially since 70 per cent of Greek debt is held by foreigners. If they are smart, they will take the EU money and then default. In any case, default is still the true backstop, not the emergency loan. Bond market investors should be well aware of that...

Ho-Ho-Ho. Take the money and default!? What the hell kind of financial advise is that from a German? No wonder Bill Gross is agitated.

Finally, back to the US, the Post has a piece that old Harry Reid wasn't helped by the health care bill. Harry has 22 people running for his seat, those are Gray Davis recall rebellion numbers. If you're in Vegas and can get the under on Harry's total vote, take it, probably about as sure a thing as there is in November.