A Preview Of Obama's Jobs Plan?

Barron's (via Ritholtz):

The fix is nearly in. There's a ballooning consensus in the nation's capital that America must begin serious spending on infrastructure. There's no need to draw on our maxed-out national credit card to pay for it all, proponents argue. User fees and the creation of an infrastructure bank to leverage private investment will provide an estimated $1 trillion in required upgrades.
Led by the Obama White House, the push for infrastructure spending has produced unlikely bedfellows. The U.S. Chamber of Commerce and AFL-CIO -- intractable foes on most other issues -- are one such pair. Tom Donohue, president and CEO of the Chamber, is agitating for fully funded highway, aviation and water-system bills, as well as an adequately capitalized infrastructure bank.
"We need action now…not after the next election," says Donahue. He estimates that 25 million Americans are either unemployed, underemployed or in such deep despair that they've stopped seeking work. Infrastructure spending over the next six years would create 1.5 million to 2.0 million jobs, he estimates.
An infrastructure bank would sell construction bonds to pensions, endowments, hedge funds and other holders of big pools of cash. Taxpayers would capitalize the bank -- one early proposal called for an infusion of $10 billion. But the institution would attract private investment many times this.

The infrastructure bank idea makes sense, helping to lessen the blow to the deficit by in effect, creating a capital budget for the U.S., while also providing safe investments for pension funds.  One of my questions recently has been why pension funds don't take over some underwriting of state and local bond isuuances.  They definitely have the money, they will invest in the issuances anyway, why not set up their own operation to cut out the middleman investment banks?  In effect, why couldn't CALPERS (or a coalition of pension funds) set up an underwriting arm, which would find subscribers to bond issuances amongst the public pension funds?  The savings could be passed back to the purchasers, as opposed to investment bank shareholders.  This infrastructure bank proposal would in effect set up the federal government in the role of underwriter, although I am sure the investement bank lobbyists have guaranteed their clients a cut of this operation.  It is a step in the right direction, but I don't think it will be a big enough step.