The narrative is established:
Just as subprime mortgage borrowers were teased into taking out loans they later could not afford when the interest rates spiked, scores of municipalities, schools, hospitals and even museums are now facing soaring interest payments on unconventional bonds that proved too good to be true.
Ready to be unleashed on any and every victim:
The District has begun paying an extra $1.2 million every month because its interest payments have doubled, and in some cases even tripled, on $601 million of these bonds. That represents nearly one-seventh of the city’s total debt and includes $24 million for the Washington Nationals’ new stadium, the District’s treasurer said. City officials were convinced by investment banks that these types of loans would be safe and cheaper than traditional borrowing.
Naturally, deceit (i.e. “teased into”) is the only explanation. We can’t expect politicians to be diligent when subjected to the avarice of evil capitalists. They couldn’t possibly be stupid or greedy themselves.
The surge in the cost of these bonds is the primary way taxpayers are being burdened by Wall Street’s credit meltdown.
The insatiable appetite among all politicians for spending unbounded by tedious constraints like tax receipts is the primary way taxpayers are being burdened. Without debt, there would be no upwardly-fluctuating interest payments.