Bankrupt NJ taking loan at JPMorgan interest could be as high as 9%

Seriously New Jersey... more money to JPMorgan? The crooks who raped the country?

After making billion using derivatives, oil speculation, propping and then shorting the house market, now the banks will be making money on taxpayers using their own state government. Brilliant.

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

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.

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.

Of course they gonna pay back in 6 months. But still, JPMorgan is gonna make money off that loan on taxpayers's back.

I think that's because nj is just as corrupt

I can't understand why a state like NJ, having all that beach front, needs a loan ? Thousands of folks from Philly and NY go down there to play on the holidays, not to mention Atlantic City all year round. You'd think that would be one state that is in the clear. What difference would the average working person see to their life after they get that loan ?

reply to post by 13star


When you have foreclosed homes you have a serious loss of tax base, This is why all these states are broke. All those homes were foreclosed by who? Who was it that we bailed out in 2008?

I sometimes feel like I must be insane because everyone is not demanding something to be done about this scam that has been pulled over on us all.

reply to post by LoneGunMan


Good point. I just assumed they would have a better economy than some of the the landlocked inner states because there's so much more to be had. What bearing does this have on other coastal states like SC that don't even have an AC ? Why didn't the government bail out the people who's homes were under foreclosure ??? That would save both rather than just save one.

I think as long as people can go home after work and zone out in front of the box, use running water, and eat when they are hungry, nothing will ever be done. You have to threaten/take away luxuries before people start to react. Our systems are so arranged that if the well dries up, the perpetrators are long gone.