Uncle Sugar's Steamin' Down the Tracks
According to a February 2, 2007 press release from the National Taxpayers Union:
“Despite clearing one legal challenge, nothing has changed in the fatally-flawed $2.5 billion loan application from the Dakota, Minnesota, & Eastern Railroad (DM&E) to warrant approval from federal officials,”
NTU added:
“This shaky venture would be the largest loan to a private company in the federal government’s history and put taxpayers on the hook if the company defaults.”
According to the press release, the study concluded:
“The federal government should not be the fall-back lender for a business that can't succeed in the real world. DM&E and its appeal for a federal loan is just another case of corporate welfare aided by high-level connections.”
Our thoughts exactly. If you prefer the complete study, it’s Issue Brief 159.