Another Pile of Bills to Pay

“Bill, you should come down here…this Saturday, they’re auctioning off Tulip Hill. It’s probably the nicest house in the county. And it’s gorgeous… I don’t know if I’ve ever seen such a pretty place…”

Our cousin was calling to tell us about a house owned by another remote cousin. It’s a beautiful place. Built in the early 18th century by a rich planter…it is an authentic Georgian brick colonial, with a park that reaches down to the river. They didn’t build many houses of that quality in America. Of those, few have survived. This is one of them.

One friend bought the place for $1.2 million (if we recall correctly) back in the mid-’90s. Then, another friend bought it for over $4 million in the bubble years. When he went to sell it, however, he found that he couldn’t get anywhere near his money back. So, it’s up for auction, with a $1.6 million minimum.

“Don’t even think about it,” said Elizabeth. “We’ve got more than enough problems already.”

So, we called our cousin back…

“I’m not even going to look at it. Because if I look at it, I might start thinking about ways to get it. The next thing you know, I’d have another roof to fix and another pile of bills to pay. A man has to know his limitations…”

And finally, this from Bloomberg:

Los Angeles will run out of cash on May 5, city Controller Wendy Greuel said today in a release in which she requested a $90 million transfer of reserve funds to pay bills.

The controller said she received a letter from the Los Angeles Department of Water and Power today indicating the utility wouldn’t send an anticipated $73 million payment to the city’s general fund. That money is part of an annual contribution of 8 percent of power revenue that the utility makes in lieu of paying taxes to the city, according to Ben Golombek, a spokesman for the controller.

“The question I have been asked most often during the budget crisis is, ‘When will the city run out of money?’ Greuel said in the e-mailed release. “Unfortunately, we finally have the answer.”


Bill Bonner
for Markets and Money

Bill Bonner

Bill Bonner

Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail Markets and Money.
Bill Bonner

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