Taxpayers Lose in the Bond Market When Local Newspapers Close
- Academics find interest costs rise when newspapers close
- With less local oversight, investors may foresee more risk
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On March 14, employees at the Denver Post were ushered into a meeting and told that the paper’s owner, hedge fund Alden Global Capital, was implementing a fresh round of cost cuts at the Pulitzer Prize-winning daily that would eliminate nearly a third of the newsroom staff.
That retrenchment isn’t just costing employees their jobs. It may also cost Denver taxpayers the next time the city raises money in the bond market.