Broke New Jersey Seeking $2.25 Billion Bridge Loan At Up To 9% From JPMorgan For Emergency Funding

Tyler Durden's picture

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gangland's picture

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Silver Kiwi's picture

nice deer though I wasn't aware they had 3 antlers... maybe been standing a bit too close to Fort Calhoun...

JLee2027's picture

It's the newly evolved Japanese deer.

gangland's picture

was trying to come up with something quickly, without the middle one it would look too much like a cow in head lights rather than a deer, though come to think of it, that may have been more appropriate given nj's cheif executive.  all that austerity and cuts to public services, just so they can sellout again to JPMag. 

Each state needs to have it's own state chartered bank to issue debt, like ND.

 

"The Bank of North Dakota is the only state-owned bank in America—what Republicans might call an idiosyncratic bastion of socialism. It also earned a record profit last year even as its private-sector corollaries lost billions. To be sure, it owes some of its unusual success to North Dakota’s well-insulated economy, which is heavy on agricultural staples and light on housing speculation."

 

http://motherjones.com/mojo/2009/03/how-nation%E2%80%99s-only-state-owne...

 

euclidean's picture

Dude, why has the deer got eyes? It should be a no-eye deer, like the US Munis. Better yet it should have no eyes and no legs - because they are still no eye deer. No eyes no legs and no dick would be perfect, since they still no fucking eye deer.

Seriously though, 9%? That's better than 8% straight into JPM coffers. The f*cking orgy continues unabated. The Muni's deserve to be double penetrated if they think anything more than Fed Funds rates is acceptable. What's that recently? Oh yeah 0.25% unsecured.

Looks like they've moved the sights onto local Governments now. Meredith W Nostradamus is about to become history again ... and to the poor girl who posted such patriotic prose recently, welcome to 21st Century America darling. 

Wake the fuck up you ignorant embeciles.

Problem Is's picture

"Dude, why has the deer got eyes?"

Whatsamatta Euclid??
Can't you construct  two non-intersecting circles with a straight edge and compass??

Get with the reality of hyperbolic geometry you passe, fallacy ridden parallel postulate mother fucker...

euclidean's picture

Tsk tsk, if only it weren't for postulate no.5. You'll vanish into your own singularity before long, God bless.

Dr. Acula's picture

>Each state needs to have it's own state chartered bank to issue debt, like ND.

Even bank of ND would collapse if people pulled out their deposits, due to the nature of fractional reserve banking - basically a Ponzi scheme based on bailment fraud.

I thought the ostensible purpose of government was to stop crime, not to perpetrate it.

 

euclidean's picture

>Each state needs to have it's own state chartered bank to issue debt, like ND.

If this was actually the case, this would give each State access to Federal Funds via low/zero interest Federal Lending. Instead, now they are forced/contrived/manipulated into using primary dealers, who charge a handsome risk premium of around 8%. Why because the proper banking system has been dismantled.

Now Muni's are forced to pay higher than necessary bridging finance when it is necessary. All out in the open and sanctioned by yours biggest truly for decades. The S&L debacle was dismantle Stage 1. The GFC was dismantle Stage 2. Until you wake the fuck up to what is going on, it is already game set and match for the serfs.

Lets erase and rebrand history so people forget. Until bridges and buildings start falling down due to a lack of maintenance. But you can blame subcontractors when that happens because it is no longer a public asset.

nmewn's picture

"I thought the ostensible purpose of government was to stop crime, not to perpetrate it."

Word.

lizzy36's picture

I don't know why you got junked. That is perfect.

NotApplicable's picture

Obviously, someone hates deer.

mogul rider's picture

Nah that was a JPM troll trying to jacklight it

bugs_'s picture

i got to junk lizzy (again)

eureka's picture

Is Greece more inportant to EU than NJ to US?

Or, Cali to US?

Long-John-Silver's picture

If Europe fails how will the Elites convince US to be like them?

NotApplicable's picture

With 9% rate coming in only 6 months, it isn't too hard to see the gun in this scenario.

trav7777's picture

yes, they are completely fucked and should not in any way be permitted to do this loan deal.  MS will create the capital from thin air and then take ownership of the NJ Capitol upon the inevitable default.

How about fucking CUT SPENDING back to where it was in those dark ages of like 10 years ago?

Ray1968's picture

Give NJ some credit. They're the only ones who HAVE cut real spending. Not just accounting tricks.

trav7777's picture

how much did they cut it by, 1%?

It needs to be cut dramatically.  YES, the holy trinity of teachers, firefighters, and police will have to take a pay cut like EVERYONE ELSE IS.

Maybe then they can focus their anger on the class of people not getting a paycut.

Gov't spending absolutely exploded in the past 10 years...since the .com bubble, it has gone apeshit.  Now, times are not booming anymore; it is time to tighten the belt.  They refuse to do anything substantial.

WestVillageIdiot's picture

You can't do that.  All firemen, police and teachers are saints.  Just ask them.

i-dog's picture

"it is time to tighten the belt"

+1

The Feds need to CUT spending by 50% just to take it back to the level of 10 years ago!! This would mean cutting $3 trillion per year (which is $30 TRILLION over 10 years in gov.speak)!

dark pools of soros's picture

get rid of debt money .. period!!! why the fuck owe anyone to allow commerce? we can devalue the dollar just as easily without paying interest to some wackoffs

I_ate_the_crow's picture

You've hit on the crux of the problem. NJ via Christie has been one of the few states actually cutting spending and it didn't make a difference. Now they are gonna borrow from JPM!? Just wait until they get their hands on California. The entire country is absolutely fucked*

*Except North Dakota, which has 4% unemployment. Not coincidentally, ND has a state-run bank which has it's largest surplus ever!! It's the banking system, dummy. I was laughing in absurd-ironic-angry disbelief when Bernanke referenced ND as a positive example during one of his pressers.

JLee2027's picture

NJ via Christie has been one of the few states actually cutting spending and it didn't make a difference.

Great way to express of the depth of the problem being faced. It's Financial Armageddon, and they are going to lose.

Vampyroteuthis infernalis's picture

And why would anyone want to live in ND?

I_ate_the_crow's picture

Valid question.....though not the point. The point is that there is nothing stopping every state legislature in the USA from adopting a similar system. ND's has worked for 90 years.  

We have reached the tipping point. What Trav was advocating for above is austerity - cut state fire, police, teacher jobs and other spending dramatically in order to pay the pensions of the retired and soon to be retired, at the expense of the next generation of kids and current employees/taxpayers. It's a microcausm for the federal government debt ceiling nonsense. We are passed the point of balanced budgets.

As individual states we have two choices, just like Greece: (1) accept austerity while continuing to borrow to keep the lights on, which ends with the banks owning every asset, or (2) tell the federal government and its banks to go fuck themselves and crawl back into the gutter from whence they came.

I choose (2). Each state implementing the ND model would allow this to happen. In my opinion this is the issue that all USA ZH'ers should be pushing for locally in our home states. Forget politics, forget Dems/Reps, forget all the bullshit and just focus on this issue. All credit to Bill Still (I have no affiliation with the dude, he's just the MAN).

http://www.youtube.com/watch?v=Q79PtQucWx0

trav7777's picture

this isn't correct at all.

You create a false dilemma.

Revenues have fallen; spending should too.  I'm not suggesting to pay the fucking bankers back.

STRUCTURALLY, Greece spent too much money even WITHOUT banksters!  They spend more than they produce, just like NJ.

WTF do you suppose is gonna happen after you tell the banks to fuck off?  You still think we can spend like Greece after that?  You cannot perpetuate the debt-fueled "prosperity" even if you repudiate the debt!

YES, cut police, YES cut firefighters.  They earn MORE than they are worth.  Cut all the goddamned subsidies, the crony payouts, spending up and down the board BACK to the awful dark ages of 10 years ago (when we still had more than enough teachers, firefighters, and police!!!).  AND tell the banksters to fuck off.

bob_dabolina's picture

More importantly we need to cut public education. 

We need more private education. 

Public education has been an epic nightmare. 

Tabarnaque's picture

I believe that banking institutions are more dangerous than standing armies… If the American ever allow private banks to control the issue of currency… the banks and corporations that will grow around them will deprive the people from their property until their children wake up homeless on the continent their fathers conquered.

 

Thomas Jefferson. 

bob_dabolina's picture

What if Americans became so dumb they didn't care? 

....look at where we're @?

Bendromeda Strain's picture

With 9% rate coming in only 6 months, it isn't too hard to see the gun in this scenario.

Payday lending writ large...

AwlDone's picture

inportant... I think you meant is Greece more IMPOTENT.  /sarc off

Cali actually feeds a large portion of the nation... and Mexico indirectly!

andybev01's picture

Yeah but it's the Mexican people who are picking the food in the fields so it sort of balances out.

Bananamerican's picture

yeah, sort of like the way my dick balances off the end of your nose....

andybev01's picture

If you want to pay $20.00 for a tomato send all of the 'illegals' back home.

Rodent Freikorps's picture

Not if you end welfare, long term unemployment and really let lazy people starve to fucking death.

Being hungry works wonders for getting these worthless eaters off the couch.

maximin thrax's picture

Harsh, but true. Nothing wrong with stimulating the industry gene with a bit of hunger. Working for food has been tried in the past, and whatayaknow... it works.

Use of Weapons's picture

Actually, the more successful trick was getting other people to grow your food, and then to steal it.

Slavery / Empire, Castes / Religion, Divine Rights / Divine Blood yadda yadda yadda been around for a few thousand years.

trav7777's picture

you fucking stupid idiot.

You actually think that the consumer gets the benefit of lower wages?  You're a MORON.

The executives get the benefit.  After outsourcing, prices STILL WENT UP.  The difference was profits.

Idiots like you are more dangerous than either bankers OR standing armies.

LudwigVon's picture

This is correct. Prices have risen dramatically since 1975 or so, the undulations in effective wage courtesy of globalization have impacted this broader trend from the consumers perspective, in no way.

sourgrapesson's picture

Only if they take there lard loving cockroaches with them!

I grow my own tomatos ...

Bananamerican's picture

exactly. it aint rocket science.

You can't throw a rock at an LA Times crime story without it landing on a mexican these days. Nasty fucking peasants.

Canada's alright but sweet mother of god, why couldn't we have landed next to Japan when Pangea broke up?

prole's picture

"If you want to pay $20.00 for a tomato send all the illegals back home."
Note above nonsense and stupidity.

A- Tomato already costs $2.00 for one stupid tomato.  I guess the other $1.95 of tax built into the tomato cost is for food/clothing/shelter/free medical/education/federal prisons/jobs (ha) for the illegals vast extended families. (poof they aren't illegal. they are chartered. you won congrats. we lost our country)

B- If you sent the illegals home, and let them grow all the tomatos they want in their homeland, and let them export to us, we would get tomatos here for their natural price, a fricken nickel. But free trade and improved standard of living on both sides of the frontera just doesn't work for you does it?