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EXECUTIVE POLL

Bernard Madoff, convicted of running an $65 billion Ponzi scheme, was sentenced to 150 years in jail. What’s your take on his punishment?

Too heavy. There’s no point having him die in jail.
About right.
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CURRENT LETTER

 
The Kiplinger Washington Editors
July 2, 2009
 

Overhauling
Financial Regs

By year-end or so, Congress will give the nod to a major rewriting of the nation's financial regulatory system. This week’s Kiplinger Letter explores whether the package will do more harm than good and what lawmakers are likely to include.
 
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OPEN FORUM: Share your insights and analysis with other visitors.
 
I just attended a franchise seminar. The speaker represents a few hundred franchises that (he says) are hand picked. He has the prospect (aka victim?) answer some questions about themselves then he makes recomendations - based on your personality, capital situation, etc.. If you pick a franchise, then he does some due dilligence for you. If you both decide it's a good idea, he helps you get started. He says he offers this service free of charge, which means he gets a commission if he's able to sell you a franchise. Has anyone done this? Successfully? Unsuccessfully?
-- fender
 

Amtrak in Line for a Big Funding Boost

Rising gasoline prices are helping convince Congress that it's time to give the national railroad a shot in the arm.
 
 

Congress is close to passing an Amtrak bill that will give the beleaguered passenger carrier a much needed financial lift. The House recently passed the legislation that provides nearly $15 billion over a five-year period to rebuild Amtrak. The move comes as ridership reaches an all time high of 28 million passengers, due in part to high gas prices and increasing congestion at airports and on highways. "More than just a convenient way to travel, Amtrak is also energy efficient -- 17% more efficient than domestic airline travel and 21% more efficient than auto travel," says Rep. Corrine Brown (D-FL), chairwoman of the House Transportation and Infrastructure Subcommittee on Railroads, Pipelines and Hazardous Materials. The bill authorizes funds to buy new passenger cars and other equipment, rehab bridges and repair tracks.

Eliminating delays along Amtrak routes is a key goal in the legislation. For years, a common complaint from passengers has been that Amtrak service is unreliable. That's largely due to freight traffic congestion because -- apart from the Northeast corridor -- Amtrak travels on tracks owned by freight companies. By taking steps to alleviate congestion along known problem routes, Amtrak should be able to improve its on-time performance and increase ridership. Amtrak identified 18 congested corridors where federal funding could quickly make a big difference, including Washington, D.C. to Richmond, Va.; Richmond to Selma, N.C.; Seattle to Portland, Ore.; Chicago to Porter, Ind.; Chicago to Detroit, and San Diego to Los Angeles.

Grants to states to set up or expand passenger rail service are also included in the legislation. Uncle Sam would pick up 80% of the capital costs of facilities and equipment for new or expanded intercity passenger rail. Also in the bill are grants to states to develop and finance construction and equipment for 11 high speed rail corridors.

Odds favor passage this year, despite remaining hurdles. Differences between the House and Senate versions of the legislation must still be worked out by lawmakers. The main difference is a provision in the House bill that allows private companies to create a high-speed service between Washington, D.C. and New York City. The provision is likely to be in the final bill to garner enough GOP votes to override the veto that President Bush has threatened. The White House has long advocated privatization of Amtrak and deep funding cuts. Congress has resisted, setting funding levels just high enough to keep the passenger carrier limping along. This bill would change that, although the money would later have to be appropriated by Congress, a second hurdle that could prove difficult, given the huge budget deficit facing the country.

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