Okay then. Senator Dodd answered my curious questions about the reality of the Homeland Security Infrastructure Reinvestment Bank via Reuters UK:
WASHINGTON, Feb 9 (Reuters) – The United States Senate could pass a bill to found a national infrastructure bank in the next 12 months, said Democrat Chris Dodd, who chairs the Banking Committee, on Monday.
"President Obama co-sponsored our infrastructure bank legislation as a senator and endorsed the idea during his campaign. So, I’m hopeful to see action on the bill this year," Dodd said.
For more than a year bills to create a bank that would fund roads and capital works projects with a combination of seed money from the federal government and bond financing have sat in both houses of the U.S. Congress.
The idea has recently fallen to the shadows as Americans turn their attention to boosting infrastructure in the economic recovery bill the Senate will likely vote on Tuesday. But the Connecticut Senator said the bank, which would have an independent board to decide which projects receive backing, was still a viable idea.”
Even the investors are buzzing about it and starting to buy up related stocks. An investment consulting firm here in the US, CG/LA, had words of wisdom for the infrastructure investor.
“In the US, CG/LA foresees that the US will carry out about $190 billion in infrastructure spending. It also predicts that President-Elect Obama’s proposed infrastructure bank will be created. Anderson believes that it would have to be at least $300 million in size in order to make a meaningful impact on US infrastructure. This would be five times larger than the $60 million infrastructure bank plan unveiled by Senator Chris Dodd (D-CT) in August 2007.”
And finally, the Independent, in the UK , had their understanding on the President’s infrastructure plan way before US MSM has even tried to find out. On January 25, 2009:
“The President’s transition team has met at least one City figure close to the EIB to discuss how to set up a bank dedicated to rebuilding America’s creaking transportation infrastructure. It is estimated that the backlog of road repairs is close to $5 trillion.
A spokesman for the Federal Highway Administration said on Friday:
"There are no plans currently in place, as the US Secretary of Transportation was only sworn in yesterday. [But] I can tell you that state infrastructure banks are being considered."
President Barack Obama’s administration is looking to establish a $60bn (£43.5bn) infrastructure bank based on the European Investment Bank (EIB), which is bailing out small UK businesses hit by the financial crisis.
The source added:
‘Obama’s new government is talking about a $50bn-to-60bn infrastructure bank. The EIB is going to lend more than that this year, so the US is now looking at how the bank operates.’
“A national infrastructure bank would ensure that important projects receive funding — creating a new funding stream and competitive process for wastewater systems or any other project that offers the greatest economic and environmental benefits that no community can afford to rebuild on its own," Dodd said in a speech at North Carolina State University.
Further reporting on the conference:
“Sen. Chris Dodd, D-Conn., at the N.C. State Emerging Issues Forum , made cogent arguments for not just aiming for "shovel-ready" projects but "future ready" projects. He also pointed out (as if you hadn’t heard) that the nation’s infrastructure got graded mostly a D by the American Society of Civil Engineers. Where’s the leadership for transformative projects, he asked, akin to the Erie Canal or the first transcontinental railroad, rural electrification or the interstate highway system?
He pitched a major rail initiative – connecting the nation’s major urban areas with high- or higher-speed rail – and let Detroit build the rail cars and buses the nation will need to refocus its transportation system to a more inclusive one – i.e., not just highways.
He pitched a National Infrastructure Bank, to create a new funding stream and competitive process. As it is, transportation in America is basically carried out by 50 states with 50 different plans.”
Finally, on January 7, 2009, Norman Anderson of the Journal Of Energy Efficiency And Reliability made 5 global infrastructure projections and guess what was #1…You guessed it. Obama creating an infrastructure bank.
“Here are my 5 infrastructure projections for 2009:
1. National Infrastructure Bank. In the US, the Obama government will create a National Infrastructure Bank, — this will be a sustained game changer for the US infrastructure industry, doubling market size to $300 billion and, more importantly, creating new markets, and new ways of thinking about mobility, inter-modality and productivity…”
I found Mr. Anderson’s note of interest due to the tag at the end of his predictions:
“Please send me your projections by January 16th and I will share these with the nearly 100,000 infrastructure professionals in CG/LA’s global data base on January 20th, 2009.”
Dodd’s Bill, S 1926, had some type of update on January 15th, 2009.
So follow the money to your favorite stocks because one investor wrote:
"The credit crunch has taken an enormous toll on spending. Without money floating between lenders and borrowers, many projects are put on the back burner. The new bank is expected to open up with $60 billion in its reserves and plans to spend aggressively. You can count on private borrowers lining up to start new projects with that cash.
The arrangement of this bank also depoliticizes infrastructure. Since most projects are necessary expenditures, politicians shouldn’t be involved. Unfortunately, infrastructure spending is political. Congressmen fight tooth and nail about which projects are funded until Congress adjourns and nothing is agreed upon. This new bank will fix that problem.
The National Infrastructure Reinvestment Bank will be a separate entity from the government. It will be made up of a five-member Board of Directors, modeled after the Federal Deposit Insurance Corp. (FDIC). This Board will make decisions on where to spend the trust money… not politicians.
Obama co-sponsored the bill when it was first drafted, and because the wheels fell off it in committee, he plans to reintroduce it as part of his “first priority” energy plan. This new bank will help kick start the hundreds of thousands of projects that were delayed or scrapped because of funding…
This small cap has a minimum upside of 205%, but we expect somewhere between 261% and 711% gains.
Wow. How did the ad go? Oh Yeah…
"When money talks, people listen."
Guess it is about time we talk about the National Infrastructure Reinvestment Bank.