I dont fault the guy for starting a business. I dont fault the guy for making something tangible in this country. I dont fault the guy for building a cheap, "easy entry" product that could be a winner with municipalities that dont have much in the form of startup funds for commuter rail.

But any business of this scope needs a bigger financial partner. The fact that the second failed venture was named "Rader Railcar II" leads me to believe the guy was reluctant to do things any other way than having Mr. Rader, and nobody but Mr. Rader, in charge. Sounds like a bit of personal bravado there on Mr. Rader's part, trying to make a personal name in the business. And without the cash infusion from a fat-wallet partner, the ponzi scheme of financing one project with funds from another was the only possibility.

Railcar/LRV building is a capital intensive venture. You just don't enter the business with a $28 million purse from selling a previous business. You don't compete with Siemens, Alstom, Bomb, and the slew of foreign players with a $28 million purse and a lack of willingness to share the ownership. To me, that logic is where the enterprise derailed. In the end, it becomes another failure that works against mass transit and sours the experience. Its another failed venture where the business had a $8M cash flow deficit while the owner lived in a $5M house.

As for the Marlboro train, I think PM wrongly went into it thinking $28M was sufficient. Hell, you cant buy a new HEP-equipped locomotive for under $4m. Scratch building 21 custom, luxury railcars would certainly require more than $20M. I would have pegged the cost of the PM train at $50M minimum, without the manufacturing screwups.