My understanding of tax-exempt bonds.

The Yankees borrow money from a government entity, repay it with interest, and the interest that the investors accumulate is not subject to taxes.

These bonds are sold to public investors seeking a low-risk investment.

There's a lot more going on here in terms of politics, etc.

But tax-exempt bonds are an easy way for a government to make a little money. Not a lot of money in the scheme of government entities, but a little bit of money.

I don't know if the new Stadium is worth the cost. The Yankees will profit; the Bronx probably will not profit too much. More of a pride thing than an economic thing.

Seriously, though, what the heck is Richard Brodsky even talking about? Does he not have a basic understanding of how bonds work?

Or maybe I don't. I thought I did.

They're like stocks except they're lower risk and lower return. Lower risk because, basically, a government entity can never truly run out of money (it's exceedingly unlikely). Worse comes to worse, they'll just print more money or, you know, raise the cost of a parking ticket rather than default.

So, the bond is issued, maybe it's a 5% annual return over 10 years (I'm making that up) and, you know, your IRA has tanked 49% this calendar year, so you opt for municipal bonds instead.

This is not a subsidy. A subsidy is different. Stop calling a bond a subsidy.