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

Tyler Durden's picture


Is New Jersey the canary in Meredith Whitney's coalmine? According to the WSJ, New Jersey may be the first state to use the highly unconventional approach of using a commercial bank funded bridge loan as large as $2.25 billion to "plug a cash shortfall." The loan raised by Chris Christie's state, "would cover bills the state will need to pay as its new fiscal year begins July 1. Normally, states have some cash available as they finish one fiscal year and begin the next, while gearing up for a bond offering based on the new budget...Terms of the loan, also known as a credit line, haven't been finalized and negotiations could fall apart, according to the people familiar with the matter." And since this will likely be a benchmark loan whose term sheet will be promptly circulated to other cash-strapped states, it will be all the more important in defining such key term components as subordination, collateralization, and general interest rates.

From the WSJ:

It can take up to two months to prepare the necessary documentation for a bond offering once a budget is set for the coming fiscal year, while the state's cash crunch is likely to occur in the next few weeks, one of the people said.

Bank loans often require less documentation than a municipal bond does, and can be finalized in less time.

New Jersey put in place a $2 billion credit line in 2009, but didn't need to use the loan because of a surge in back taxes that arrived in time, state officials said.

This year, officials don't expect a last-minute reprieve, the person said.

The use of funds is tautological: repay debt.

The state would aim to repay the bridge loan with proceeds from the bonds it expects to issue later this summer, known as tax-and-revenue anticipation notes. Those bonds are expected to be paid off through tax receipts.

The source of the emergency funding would be loan shark extraordinaire, JPMorgan:

State officials are negotiating with J.P. Morgan Chase & Co. over terms for the bridge loan, following a spirited competition for the state's business, several people familiar with the selection process said.

And in true JPM fashion, the loan's interest would be low at first... then surge.

One person familiar with some proposed terms of the possible loan said the interest rate is relatively low, but it could shoot as high as 9% if the state didn't pay back the bank in six months.

When this loan closes successfully, expect many more states to follow suit shortly as everyone attempts to plug cash shortfalls "while things improve" when the assumption of such an optimistic outcome is certainly in question now that the economy has officially turned down.

The good news for M-Dub haters: the can has just been kicked down for another 6 months...


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Mon, 06/27/2011 - 18:29 | 1406733 gangland
gangland's picture

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Mon, 06/27/2011 - 18:47 | 1406814 Silver Kiwi
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...

Mon, 06/27/2011 - 19:26 | 1406913 JLee2027
JLee2027's picture

It's the newly evolved Japanese deer.

Mon, 06/27/2011 - 19:34 | 1406944 Rodent Freikorps
Rodent Freikorps's picture


Mon, 06/27/2011 - 19:53 | 1406968 gangland
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."


Mon, 06/27/2011 - 20:01 | 1407017 euclidean
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.

Tue, 06/28/2011 - 00:28 | 1407876 Problem Is
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...

Tue, 06/28/2011 - 01:29 | 1407986 euclidean
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.

Mon, 06/27/2011 - 20:09 | 1407068 Dr. Acula
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.


Mon, 06/27/2011 - 21:11 | 1407258 euclidean
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.

Mon, 06/27/2011 - 21:19 | 1407289 nmewn
nmewn's picture

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


Mon, 06/27/2011 - 18:51 | 1406815 mynhair
mynhair's picture

Nice deer....

Mon, 06/27/2011 - 18:53 | 1406819 lizzy36
lizzy36's picture

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

Mon, 06/27/2011 - 19:00 | 1406832 NotApplicable
NotApplicable's picture

Obviously, someone hates deer.

Mon, 06/27/2011 - 19:06 | 1406865 mogul rider
mogul rider's picture

Nah that was a JPM troll trying to jacklight it

Mon, 06/27/2011 - 19:12 | 1406881 bugs_
bugs_'s picture

i got to junk lizzy (again)

Tue, 06/28/2011 - 02:05 | 1408021 MrButtoMcFarty
MrButtoMcFarty's picture


Mon, 06/27/2011 - 18:24 | 1406736 eureka
eureka's picture

Is Greece more inportant to EU than NJ to US?

Or, Cali to US?

Mon, 06/27/2011 - 18:30 | 1406764 Long-John-Silver
Long-John-Silver's picture

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

Mon, 06/27/2011 - 18:59 | 1406841 NotApplicable
NotApplicable's picture

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

Mon, 06/27/2011 - 19:05 | 1406850 trav7777
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?

Mon, 06/27/2011 - 19:16 | 1406879 Ray1968
Ray1968's picture

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

Mon, 06/27/2011 - 19:33 | 1406932 trav7777
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.

Mon, 06/27/2011 - 20:10 | 1407077 WestVillageIdiot
WestVillageIdiot's picture

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

Mon, 06/27/2011 - 22:11 | 1407415 i-dog
i-dog's picture

"it is time to tighten the belt"


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)!

Tue, 06/28/2011 - 00:24 | 1407871 dark pools of soros
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

Mon, 06/27/2011 - 20:55 | 1407234 drB
drB's picture

TX cut spending by a lot - about 8%. How much did NJ cut?

Mon, 06/27/2011 - 19:21 | 1406887 I_ate_the_crow
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.

Mon, 06/27/2011 - 19:29 | 1406922 JLee2027
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.

Mon, 06/27/2011 - 20:11 | 1407082 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

And why would anyone want to live in ND?

Mon, 06/27/2011 - 20:35 | 1407183 I_ate_the_crow
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).

Mon, 06/27/2011 - 23:01 | 1407652 trav7777
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.

Mon, 06/27/2011 - 23:42 | 1407786 bob_dabolina
bob_dabolina's picture

More importantly we need to cut public education. 

We need more private education. 

Public education has been an epic nightmare. 

Tue, 06/28/2011 - 00:58 | 1407913 rufusbird
rufusbird's picture

"Why would anyone want to live in ND?"

Mon, 06/27/2011 - 21:58 | 1407412 Tabarnaque
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. 

Mon, 06/27/2011 - 23:49 | 1407808 bob_dabolina
bob_dabolina's picture

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

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

Tue, 06/28/2011 - 05:58 | 1408149 Bendromeda Strain
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...

Mon, 06/27/2011 - 18:37 | 1406786 AwlDone
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!

Mon, 06/27/2011 - 19:43 | 1406958 andybev01
andybev01's picture

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

Mon, 06/27/2011 - 19:53 | 1406999 Bananamerican
Bananamerican's picture

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

Mon, 06/27/2011 - 20:00 | 1407013 andybev01
andybev01's picture

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

Mon, 06/27/2011 - 20:03 | 1407022 Rodent Freikorps
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.

Mon, 06/27/2011 - 20:15 | 1407080 maximin thrax
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.

Mon, 06/27/2011 - 20:37 | 1407188 Use of Weapons
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.

Mon, 06/27/2011 - 23:03 | 1407662 trav7777
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.

Tue, 06/28/2011 - 04:10 | 1408120 LudwigVon
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.

Mon, 06/27/2011 - 23:40 | 1407791 sourgrapesson
sourgrapesson's picture

Only if they take there lard loving cockroaches with them!

I grow my own tomatos ...

Tue, 06/28/2011 - 01:07 | 1407933 Bananamerican
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?

Mon, 06/27/2011 - 23:45 | 1407800 prole
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?

Tue, 06/28/2011 - 01:12 | 1407936 Bananamerican
Bananamerican's picture


Tue, 06/28/2011 - 00:30 | 1407880 dark pools of soros
dark pools of soros's picture

people used to ALL have tomato patches in their yards..  tomatos everywhere for free..  tossed around all over the neighborhood


lazy shits now



Mon, 06/27/2011 - 18:27 | 1406738 Cassandra Syndrome
Cassandra Syndrome's picture

So the taxpayers of New Jersey bailed out JP Morgan, who are now bailing out New Jersey.

Sounds like classic Twilight Zone material.


Mon, 06/27/2011 - 18:35 | 1406777 Caviar Emptor
Caviar Emptor's picture

+1. But the taxpayers didn't charge 9%. They subsidized private enterprise. 

Mon, 06/27/2011 - 19:53 | 1406981 Bananamerican
Bananamerican's picture


one fucking corp whose bonus pool could damn near fund the entire State's budget.

so much "talent"...the whore of babylon

Mon, 06/27/2011 - 18:28 | 1406739 Goldenballs
Goldenballs's picture

The noose tightens further on a bankrupt superpower.In so much trouble that puppet Obama releases emergency oil reserves because the ultimate emergency for his puppet masters is he is in danger of not getting relected.Stuff the people,stuff the country its about him and his elites.235 years after 1776 America reaches its lowest ebb.Absolutely tragic.

Mon, 06/27/2011 - 18:31 | 1406753 eureka
eureka's picture

Release oil reserves, drive down oil prices and other commodities, to drive up dollar to drive up treassuries to keep interest rates low to...

Mon, 06/27/2011 - 18:38 | 1406773 Goldenballs
Goldenballs's picture

Keep the ponzi going,to kick the ever bigger and heavier can down the motorway,to buy more time to keep Mr Useless in the Whitehouse while the Banksters and the Multi Nationals and all the rest of the 5th Columnists shift there wealth to god knows where while the Good Men do sweet FA.

Mon, 06/27/2011 - 18:40 | 1406780 Caviar Emptor
Caviar Emptor's picture

Ponzi himself is watching from above, laughing his head off. 

Mon, 06/27/2011 - 19:15 | 1406876 Cole Younger
Cole Younger's picture

Unless they pissed off OPEC and OPEC cuts production causing the price of oil to double and commodities to go sky high.

Mon, 06/27/2011 - 20:39 | 1407194 WonderDawg
WonderDawg's picture

Saudi Arabia calls the shots in OPEC, or at least calls their own shots, and they apparently have got Hopey's back.

Mon, 06/27/2011 - 19:00 | 1406844 curmudgery
curmudgery's picture

look what can-kicking can do... it took us a couple years past the 233 fib turn. 

Mon, 06/27/2011 - 19:07 | 1406857 cossack55
cossack55's picture

Tragic my ass. Totally expected.  Jefferson saw it coming in 25 years.  The fact that is hasn't is rather amazing.  But the Piper will always be paid.

Mon, 06/27/2011 - 19:24 | 1406919 mogul rider
mogul rider's picture

Actually you are right on, it will be seen as the turning point in this depression in all history books of the future.

The last gasp of a tired fascist 100 year regime. You knew they were fucked when they put a cotton picker up for president. Their days are numbered - they know it - that's why they jacked 'er up one last time to sell the high. 




Mon, 06/27/2011 - 20:45 | 1407213 MrBoompi
MrBoompi's picture

I didn't realize that dumbass Bush ever worked a day in his life, including picking cotton.

Mon, 06/27/2011 - 18:28 | 1406741 Kayman
Kayman's picture

Beautiful. The banksters asses were saved by the taxpayers, Benny lends to them at 0%, Benny provides ongoing liquidity, and these criminals will lend you your money back at 9%.

Who wrote this script ?

Mon, 06/27/2011 - 18:50 | 1406821 macholatte
macholatte's picture

When you expect things to happen - strangely enough - they do happen.
J. P. Morgan

Mon, 06/27/2011 - 20:44 | 1407206 nathan1234
nathan1234's picture

That would be Morgan's Law

Mon, 06/27/2011 - 19:16 | 1406896 trav7777
trav7777's picture

they don't even need the Bernank anymore for bullshit lending because they have no reserve requirement.

Bernank is the only one who expects no profit from his lending operation, however.  The bankster shylocks want their pound of flesh

Mon, 06/27/2011 - 19:39 | 1406959 WestVillageIdiot
WestVillageIdiot's picture

A co-worker has family selling a house in Carteret.  I saw pictures.  It is a real piece of shit.  They started with an asking price of $299,000.  I wouldn't give you $80,000.  They are hoping for some rich Indian sucker to show up with a bagload of money.  Apparently everybody thinks they are going to sell their crap to the Indians.

The same co-worker showed me a FaceBook posting by a friend of his.  The guy posting is a New Jersey gym teacher.  His post espoused how awful Wall Street is and how great all of the public employees are.  They are all underpaid and victims of Chris Christie's ruthlessness.  The corruption out here is endless and everybody justifies their corruption by pointing out somebody else's corrupt.  I am so sick of this fucking place.  It is about time to move on altogether.  This area is fucked but no worries, they will never blame themselves for anything.

Mon, 06/27/2011 - 20:18 | 1407111 centerline
centerline's picture

On the private side, shitty finances force pay cuts - especially in service based firms. Sometimes worse. On the public side it is clearly another game alltogether. Rather walking this animal down to a lower level like most surviving businesses - they will ride it like stole it... right into oblivion. Just more of reason we fucked on massive scale.

Down here in the south, public sector folks are bitching about the idea of having to contribute 3% or so to thier own pension. Meanwhile, those of us in the private sector have to fund our retirements 100%.  I suppose I am not bitter about all of this because at this point is all so laughable. Those public pensions are already toast - so its not worth the energy to further any divide within a class. Best to keep focus on the real crimes instead of those who just got played. Pissing in the wind (cat 5 hurricane) is what all this bitching adds up to.

Mon, 06/27/2011 - 20:29 | 1407141 WestVillageIdiot
WestVillageIdiot's picture

The idea that public employees fund their own pensions is bogus.  All of their compensation comes from the taxpayer, no matter what you call it.  That pension is still funded by the taxpayer 100%.

Mon, 06/27/2011 - 20:49 | 1407212 WonderDawg
WonderDawg's picture


Tue, 06/28/2011 - 00:46 | 1407894 dark pools of soros
dark pools of soros's picture

easier to just say the private sector worker bee let himself get ramrodded and just took it...  but oh, how can we be competitive in this global slave world paying all those benis...  race to the gutter - now you see it

but unions are the stupid ones right?...ya fucking short sighted fake capitalists can keep blaming people who faught for anything instead of doing anything yourselves but bitch


Mon, 06/27/2011 - 23:26 | 1407740 CEOoftheSOFA
CEOoftheSOFA's picture

Wutda. Hey, watch wutcha say about Carteret, that's where I'm from.  Waddya some sort of elitist?

CEO of the SOFA

CHS '73

Currently in the Persian Gulf

Mon, 06/27/2011 - 18:29 | 1406743 BeerWhisperer
BeerWhisperer's picture

bye bye markets... the banks are going into the government loan business.....

Mon, 06/27/2011 - 19:13 | 1406873 max2205
max2205's picture

Really!? The feds gave the money to JPM in the 1st place at 0.02%!!!

It's a fed bailout with a republican price tab.

Mon, 06/27/2011 - 18:27 | 1406744 bob_dabolina
bob_dabolina's picture

With such productive enclaves like Trenton, Camden, Newark, Carteret, and Irvington, it's hard to imagine New Jersey having problems with revenue and spending.


Mon, 06/27/2011 - 18:55 | 1406830 Rodent Freikorps
Rodent Freikorps's picture

No shit. It is fuckin Joisey. Sell it to the Chinese while it has any value at all. Better hurry.

Mon, 06/27/2011 - 19:06 | 1406852 NotApplicable
NotApplicable's picture

They can't hurry. They have to wait for the mob to liquidate first (professional courtesy).

Mon, 06/27/2011 - 20:09 | 1407065 KingdomKum
KingdomKum's picture


Mon, 06/27/2011 - 19:21 | 1406899 trav7777
trav7777's picture

why are you calling out only the areas with large black populations?  You a rayciss?

Mon, 06/27/2011 - 19:54 | 1406984 bob_dabolina
bob_dabolina's picture

Another day at the mostly black Howard University (uploaded yesterday)....

It's always good to see our black population educating themselves. I think the ones fighting were on the deanz list. Next time Michele Obama wants to connect with her African heritage she can take a short trip to Howard University and save us 500k a day. Just sayin' my nigga.

Mon, 06/27/2011 - 20:49 | 1407225 Montgomery Burns
Montgomery Burns's picture

I didn't watch the whole thing. Anyone get shot?

Mon, 06/27/2011 - 23:10 | 1407691 trav7777
trav7777's picture

HBCU graduation rates are abysmal....sort of throwing a wrench in the works of that whole "it's because of all the white people on campus oppressing them" that they use to explain the same lousy rates at PWUs

Mon, 06/27/2011 - 23:30 | 1407745 bob_dabolina
bob_dabolina's picture


No whites/asians declaring affirmative action @ HBCU

I just can't imagine why.

Mon, 06/27/2011 - 23:32 | 1407756 CEOoftheSOFA
CEOoftheSOFA's picture

Fongool you too, pal.  Don't lump Carteret in with Newark and Camden. 

CEO of the SOFA

CHS '73

Mon, 06/27/2011 - 18:30 | 1406745 WakeUpPeeeeeople
WakeUpPeeeeeople's picture

What! No Federal bailout. Where's Banana Ben when you need him.

Mon, 06/27/2011 - 18:27 | 1406746 mynhair
mynhair's picture

Christie ever consider organizing a flash mob to take all in the Morgue's silver warehouse?

Those shorts have to be worth something by now.

Mon, 06/27/2011 - 18:33 | 1406760 Goldenballs
Goldenballs's picture

The waste paper market is at a low ebb,no physical in the warehouse its all gone on a long permanent holiday abroad,just like the Gold that used to live in Fort Knox.

Mon, 06/27/2011 - 19:07 | 1406855 NotApplicable
NotApplicable's picture

Who wants a bunch of worthless SLV shares?

Mon, 06/27/2011 - 18:26 | 1406748 traderjoe
traderjoe's picture

And of course, fractional reserve banks create this 'money' for free...

Mon, 06/27/2011 - 20:57 | 1407230 MrBoompi
MrBoompi's picture

But the interest has to be paid back with real wealth the real economy created the real way, by fucking working for it and creating something.

Mon, 06/27/2011 - 18:30 | 1406750 Antarctico
Antarctico's picture

I feel genuine sympathy for the folks who live in NJ, but I'm still LMAO.

Mon, 06/27/2011 - 19:24 | 1406908 JLee2027
JLee2027's picture

I'm angry. It's obvious the Ponzi is over and done, and desperation has set in.

Mon, 06/27/2011 - 19:30 | 1406925 Antarctico
Antarctico's picture

I wish you were right that the ponzi is over, but I think we have a long, slow crash to Earth ahead of us.

Tue, 06/28/2011 - 04:22 | 1408125 LudwigVon
LudwigVon's picture

It is now obvious to him that what he is observing is croni capitalism with a late-stage ponzi layered on top. 

Mon, 06/27/2011 - 19:43 | 1406966 WestVillageIdiot
WestVillageIdiot's picture

If you spoke to the robots that live in NJ and have bought into endless amounts of bullshit you would have no fucking sympathy, whatsoever.  They are not victims.  They all want everything for nothing.  Don't even bring up the subject of gold or silver.  They will think you are absolutely fucking insane.  Their houses will pay for all of their dreams. 

Mon, 06/27/2011 - 18:30 | 1406751 thetrader
thetrader's picture

What about those Chinese Locals?

Maybe NJ should ask for accounting assistance from China?

China Downplays Debt Problems

Mon, 06/27/2011 - 23:28 | 1407757 snowball777
snowball777's picture

Get ready for a whole new bridge and tunnel crowd...and cheaper chinese delivery.

Mon, 06/27/2011 - 18:30 | 1406752 kito
kito's picture

wow, and i respected christie....up until today

Mon, 06/27/2011 - 18:33 | 1406761 mynhair
mynhair's picture

Blame it on the Court that wouldn't let him cut.

Mon, 06/27/2011 - 18:33 | 1406769 kito
kito's picture

yes and no. he couldve ceased all govt spending within his control until there is a balanced budget. enough of going to the well. and jp morgan of all wells to choose. makes me wonder about christie now.

Mon, 06/27/2011 - 18:41 | 1406795 mynhair
mynhair's picture

JPM, there is that, but I ain't got 3 bil, or I'd do it for 5%.

Mon, 06/27/2011 - 18:43 | 1406801 Corn1945
Corn1945's picture

You are full of shit. The Democrats in the legislature basically refuse to cut. As soon as any "unexpected" revenue (proceeds from Wall Street bonuses) comes in, the Democrats immediately procede to spend it.

Here are some examples:

There is no fiscal sanity in this state. It is OK for JPMorgan to loan NJ money because they will be bailed out if something happens. But a private individual deserves to lose their money if they lend it to New Jersey.

Mon, 06/27/2011 - 19:51 | 1406980 WestVillageIdiot
WestVillageIdiot's picture

The Teachers Association has plenty of money to pay for attack ads on the radio.  They are so sickening.  Kindergarten teachers pull down $90,000 for 10 months and still act like they are victims.  I know of that salary possibility firsthand.  And they are now being asked to put more of their salary towards health insurance and they are incensed.  The public employees of NY and NJ live on another fucking planet.  Screw the high finance guys and screw the unions.

Mon, 06/27/2011 - 22:25 | 1407501 kito
kito's picture

those ads are great. its always about the "children". those poor children, whose scores have actually been converse to the level of money being pumped into nj's school system.

Mon, 06/27/2011 - 23:30 | 1407761 Ident 7777 economy
Ident 7777 economy's picture

by Corn1945 on Mon, 06/27/2011 - 18:43 #1406801

- - -  - -  - -  - -  - -  - -

Still curious where you 'lifted' that flag avatar, Corn ...

Was it from a poster on

Or was it from somwhere else?




Mon, 06/27/2011 - 18:50 | 1406811 jm
jm's picture

Court or no, he'll be exactly that in 3 , 2, 1...

Wouldn't want to be counting on a pension from Jersey.  The gravy train just rerailed. 

Mon, 06/27/2011 - 19:53 | 1406983 WestVillageIdiot
WestVillageIdiot's picture

I tried to tell a guy today whose wife is a NJ public employee that it will be great when their kids are older and understand how mom and dad sold them down the river.  I didn't even mention the wars that these kids are going to have to fight due to all of the arrogance on the march now.  This stuff always leads to war. 

Mon, 06/27/2011 - 20:14 | 1407076 jm
jm's picture

Bet that made the cocktails and conversation that much more like a kick in the crotch...

Mon, 06/27/2011 - 19:17 | 1406900 Cole Younger
Cole Younger's picture

Replace all the dam judges would be my next executive order and do it by force (national gaurd) if needed.

Mon, 06/27/2011 - 18:28 | 1406758 dick cheneys ghost
dick cheneys ghost's picture

keep ur eye on minnesota........likely the state will shut down on Friday.........35000 pinks slips sent out..........

Mon, 06/27/2011 - 18:36 | 1406779 mynhair
mynhair's picture

Are they needed?  For such a small state?

Mon, 06/27/2011 - 19:54 | 1406989 WestVillageIdiot
WestVillageIdiot's picture

If you ask them they will say, "yes". 

Yesterday on the news there was a "No Child Left Behind Coordinator" being interviewed.  Shut down all of these fucking governments and start over.  It's a joke that teachers still act like they are in it for "the children".  Maybe Goldman really is doing "god's work".

Mon, 06/27/2011 - 18:50 | 1406813 slewie the pi-rat
slewie the pi-rat's picture

now those pink slips went to the state employees, not the taxpayers (for a change), right?


anybody looking for some subsidized office space to rent?  must like mosquitoeZ... here's where to write: 

Email Al on an Issue | Al Franken | Senator for Minnesota

Email Al on an Issue. Please use the form below to contact my office with your comments, questions, and concerns. Please include your full name and address ...

Mon, 06/27/2011 - 18:56 | 1406831 kito
kito's picture

dont see anything on minnesota anywhere

Mon, 06/27/2011 - 19:25 | 1406911 Cole Younger
Cole Younger's picture

""You know we've agreed to a "cone of silence" because it's conducive to us working things out," Dayton said. "I remain committed to finding a fair and balanced budget that will benefit the state of Minnesota and avoid a shutdown. We'll see if that's possible.""

No, they like the cone of silence so back door deals and other shenanigans are hidden from public scrutiny.

Mon, 06/27/2011 - 19:55 | 1406992 WestVillageIdiot
WestVillageIdiot's picture

Mark Dayton, Governor of Minnesota and King of the Douche Bags. 

Mon, 06/27/2011 - 19:19 | 1406905 kito
kito's picture

got it

Mon, 06/27/2011 - 19:23 | 1406916 dick cheneys ghost
dick cheneys ghost's picture

If you havn't seen anything on Minnesota, then i would suggest that you are not paying nakedempire2, we have over 700 stories detailing the dire situation facing the states and aint pretty....

Mon, 06/27/2011 - 18:34 | 1406763 Gubbmint Cheese
Gubbmint Cheese's picture

Wasn't Christie trying to get spending under control? And NJ is still in the soup?

Wonder what that means for some of the other States who continue to live in denial...

Hope JPM gets burned on this one....

Mon, 06/27/2011 - 19:08 | 1406872 NotApplicable
NotApplicable's picture

If JPM gets burned, they will own the state. Now, while I wouldn't want it, I bet the folks at JPM would just love to hold a sovereign entity in its sweet, loving embrace.

Mon, 06/27/2011 - 19:45 | 1406973 andybev01
andybev01's picture

They want it to burn; to get their hands on Sookie.

Mon, 06/27/2011 - 19:56 | 1406997 WestVillageIdiot
WestVillageIdiot's picture

Let them have Paterson and Asbury Park and call it even.

Mon, 06/27/2011 - 20:14 | 1407095 Slim
Slim's picture

There's no clearly defined bankruptcy process/code for states but I'll tell you that the generic municipal bankruptcy/restructure process provides creditors with near zero real rights.  They have no power to seize anything or even impact taxing rates.  A general obligation debtor can be hosed to infinity over decades.  Now elevate that to the state level - now you know why they want 9%.

Mon, 06/27/2011 - 19:37 | 1406954 Prometheus418
Prometheus418's picture



Now, they are loaning money back to the same people that hauled their asses out of the fire, at interest?

If not now, when?

Mon, 06/27/2011 - 18:36 | 1406766 buzzsaw99
buzzsaw99's picture

fat boy, what are you doing under jamie dimon's desk? lololololol

Mon, 06/27/2011 - 18:36 | 1406767 Iam Rich
Iam Rich's picture

Well, NJ has coastal property (like Greece), probably some inland islands (sort of like Greece), really cool looking buildings (like Greece), plenty of union bureaucrats (like Greece)...sounds like collateral and ability to pay to me.  JP can pretend they have collateral (what market will this be marked to) and NJ can pretend they can pay.  Lend away.

Mon, 06/27/2011 - 19:54 | 1407004 WestVillageIdiot
WestVillageIdiot's picture

Don't forget New Jersey's entitlement mentality, like Greece.

Mon, 06/27/2011 - 20:47 | 1407205 centerline
centerline's picture

Pretty much the same across the States.  I did recently bump into a little old man checking out at a grocery store with only a few cheap items.  He was having trouble using his food stamp debit card - explaining to the cashier that he had never used one those things before.  He kept his voice low and seemed genuinely embarrassed about using the card.  I could only think of those that really need help, who are about to be utterly destroyed as the wheels come off this ride.

Mon, 06/27/2011 - 18:37 | 1406770 Bay of Pigs
Bay of Pigs's picture

Jamie "Legs" Dimon.

Modern day Bankster Gangster...make them an offer they can't refuse.

Mon, 06/27/2011 - 18:40 | 1406793 Caviar Emptor
Caviar Emptor's picture

And we love our gangsters in this country. And our robber barons. Shady Wall Streeters are film icons. 

Mon, 06/27/2011 - 18:37 | 1406772 slewie the pi-rat
slewie the pi-rat's picture

tyler writes:  The use of funds is tautological: repay debt.

the tautology that keeps on taut-ing!

Mon, 06/27/2011 - 18:38 | 1406788 Caviar Emptor
Caviar Emptor's picture

The whole state of New Jersey will enter into a sharecropping agreement with JPM: 50% of of all goods manufactured and all services rendered in exchange for use of the state. 

Mon, 06/27/2011 - 19:51 | 1406982 andybev01
andybev01's picture

Who wants tankers full of Axe Body Spray and hair gel?

Mon, 06/27/2011 - 20:05 | 1407033 WestVillageIdiot
WestVillageIdiot's picture

If only political corruption could be bottled.

Mon, 06/27/2011 - 18:42 | 1406789 AmCockerSpaniel
AmCockerSpaniel's picture

Not bailing out the states is better than bailing out the TBTF.

Mon, 06/27/2011 - 20:06 | 1407037 WestVillageIdiot
WestVillageIdiot's picture

There are a lot of things wrong with your statement.



Mon, 06/27/2011 - 21:39 | 1407340 AmCockerSpaniel
AmCockerSpaniel's picture

I hope and pray you are right!

Mon, 06/27/2011 - 18:39 | 1406791 pooplagrande
pooplagrande's picture

Maybe he can fly his chopper and chuck cash out the window Bernake style, on the way to his kid's baseball know...kill 2 birds with one stone?

Mon, 06/27/2011 - 18:48 | 1406807 mynhair
mynhair's picture

At least Christie doesn't cut divits or cells every fukking weekend.

Mon, 06/27/2011 - 22:09 | 1407451 Hedgetard55
Hedgetard55's picture



"Man he sucks".

Mon, 06/27/2011 - 18:41 | 1406797 Everybodys All ...
Everybodys All American's picture

Gives you an idea about how big the economic problems are if a budget cutter like Christie can't get his own state's budget in line right now. This year's end is going to be very interesting. Ever wonder what the heck California,Illinois, or Michigan is going to do?

Mon, 06/27/2011 - 18:44 | 1406805 Goldenballs
Goldenballs's picture

Declare independence would be a good start.

Mon, 06/27/2011 - 19:12 | 1406868 cossack55
cossack55's picture

By that I hope you mean secede.  I am definitely moving to the first state that drops out of the 1st US Reich.

Mon, 06/27/2011 - 18:45 | 1406798 infinity8
infinity8's picture

Just last Friday Christie was tooting his horn about the great NJ compromise to increase what public employees pay in to their benefits and D.C. should follow his lead. Day late and a few dollars short?

Mon, 06/27/2011 - 18:46 | 1406799 Cognitive Dissonance
Cognitive Dissonance's picture

Imagine the derivatives that will be spun off of these bridge loans. That's where the real jingle will be made and ultimately lost once bridge loans are made to bridge the bridge loans.

Another inflection infection point is about to be crossed.

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