Michigan Votes Forum

Why not?  Safer than the stock market! 

 banks failed.

that's why we had the first bailout, to get the banks back on track. it failed miserably, because the banks bought other banks.

if the government has money to invest, it should realize that money is OURS not theirs, and give it back. the government is not a private company, it's goal is not to make profit. it's goal is to provide necessary services and nothing else.

investments give dividends, which, when talking about our tax money, means PROFITS. those dividends, and the spare tax income, should go directly back to the taxpayers, not to some government program that our taxes already fund, or to some program the people didn't support in the first place..

inform4:

Why not?  Safer than the stock market! 

I agree.

 because if they have the money to invest, that means we have already been taxed too much.

our taxes ARE their only source of income.

crazycajun:

 because if they have the money to invest, that means we have already been taxed too much.

our taxes ARE their only source of income.

This shows how absolutely ignorant you are when it comes to matters involving basic cash flow management.

In today's markets, insured CDs are a good place for governments to stash collected funds until it becomes necessary to release them to cover expenses. 

 you mean todays FAILING markets?

this state is over two billion in the hole. if it has any money to invest, let it invest in it's own bonds. they're insured... RIGHT?????

NOOOOOOTTTTT!!!!!!

i'll say it again. if the state has any money to invest, it's because we have been taxed too much. simple as that. the state does not deal in cash, it deals in credit. it works from budget to budget owing people money, like me. how do you think they got two billion in the hole in the first place?

all suppliers and contractors extend credit till the budget items get approved. then we hope the money is there to clear the checks.

crazycajun:

 you mean todays FAILING markets?

this state is over two billion in the hole. if it has any money to invest, let it invest in it's own bonds. they're insured... RIGHT?????

NOOOOOOTTTTT!!!!!!

i'll say it again. if the state has any money to invest, it's because we have been taxed too much. simple as that. the state does not deal in cash, it deals in credit. it works from budget to budget owing people money, like me. how do you think they got two billion in the hole in the first place?

all suppliers and contractors extend credit till the budget items get approved. then we hope the money is there to clear the checks.

Three things, since you evidently are in great need of education.

1 - This has nothing to do with state government.  It pertains to local units of government.  You should learn to read.

2 - Your comments reflect not just knee-jerk stupidity but also a profound lack of knowledge about how local government finances work, from a cash flow perspective.  Money comes in sporadically in chunks, and goes out periodically as bills become due.  These events do not necessarily coincide.

3 - Sound (businesslike) cash flow management does not mean stiffing creditors until they scream to be paid or go belly up waiting.  That is especially so for units of government.  Since receipts and disbursements come at different times, on different schedules money in hand must be managed prudently.  In this case, insured CDs issued by credit unions represent a safe means of storing cash, and may even yield a small growth in value, which certainly benefits the taxpayer.

Kindergarten class dismissed.

Passage of this legislation will provide local government units another option in managing their cash.  That is why I endorse it.  

 you mean the same local governments that cause suppliers and contractors to WAIT for months to be paid???

insured cd's have a DEFINATE TERM, which invokes the old phrase "penalty for early withdrawal". short term cd's are not insured, nor can they be. once again, if the local government has EXTRA CASH TO INVEST, IT IS BECAUSE WE WERE TAXED TOO MUCH.

file that right up there with KEEP YOUR HANDS OFF THE STOVE and DON'T STICK PAPER CLIPS INTO LIGHT SOCKETS.

remember, it's NOT THE GOVERNMENT'S MONEY... IT'S OURS. if it's to be invested for profit, let US invest it for profit.

Crazy, repeating the same old junk about this doesn't make you any less the ignorant dunce you've demonstrated yourself to be on the matter of local government cash flow.  Now you've expanded the scope of your ignorance to take in credit union operations as well.

 so, educate an ignorant dunce. tell me how putting our tax money into a short term cd is going to help us out any at all?

oh... i'm sorry... you don't run a credit union. nor do you run a government, or a business, or anything but your mouth. 

crazycajun:

 so, educate an ignorant dunce. tell me how putting our tax money into a short term cd is going to help us out any at all?

Attempting to educate an ingnorant dunce is an exercise in futility, as we discover quickly in our dealings with you.

But in case there is someone reading this who hasn't yet fried his brain on whatever it is you have sucked up, here goes:

1.  It is safe.

2.  It reduces the depreciation effect on money accumulated and held until it must be disbursed.

In short, it protects, conserves and husbands public resources, just as we expect responsible public officials to do.  

 so, what is the shortest term cd that a government can invest in?

a year? two? ten?

we trust them not to over-tax (over-charge) us in the first place, and look how that worked out.

even a six month cd would be problematic, as the funds are not usually 'planned out' that far.

and there is no depreciation for cash unless the monetary ratings fall. we are not dealing with foreign countries here, a dollar is still a dollar, and prices do not go up for contracted services without a new clause in the contract.

besides, if they put the money in a cd, it's just that much longer the supplier or contractor has to wait to get his money.

what part of that don't you understand?

oh.. yea... all of it.

crazycajun:

even a six month cd would be problematic, as the funds are not usually 'planned out' that far.

I am willing, and even eager to give my county and township governments the option of deciding what investment vehicles suit their financial needs.  Allowing them to purchase certificates of deposit issued by credit unions is a a safe option when it fits local government cash flow situations

and there is no depreciation for cash unless the monetary ratings fall. we are not dealing with foreign countries here, a dollar is still a dollar, and prices do not go up for contracted services without a new clause in the contract.

Wrong.  Money you stashed in your mattress a year ago today is worth only about 96.3 cents on the original dollar.  In other words, due to inflation it has depreciated at a rate of nearly 4% over the last year.  Investment in safe, interest earning vehicles like CDs issued by credit unions is a prudent way to minimize the depreciation of accumulated funds.

The remainder of your argument against this bill is based on your imagination.  

Well, I tried to educate an ignorant dunce, knowing (as stated above) it is an exercise in futility.  Your post just reaffirms that one.

Have a nice day in LaLa Land.

 so, you would let them take YOUR money that they OVER-TAXED you for, and invest it to get a BIGGER PROFIT?

no wonder your money is worth less to day than yesterday. how about we mandate that if there is a surplus in the budget to invest, that it gets refunded to the taxpayers.

this is not talking about 'earmarked' funds for projects, but surplus funds from over-taxation.

'earmarked' funds do not have the luxury of waiting six months or a couple of years for the cd to mature.

all your local governments 'cash flow' problems are solved with amendments to the budget and the tax schedule. not by investments.