New Jersey Interest-Rate Swap Costs State $22k A Day

bloomberg.com:

Dec. 4 (Bloomberg) -- New Jersey taxpayers are being saddled with a bill of about $657,000 a month from Bank of Montreal for an interest-rate swap approved by state officials and linked to bonds that were never sold.

Read the whole story: bloomberg.com

Comments

[invest in jobs]

11:42 AM on 12/06/2009

NO more bailouts. No more bonuses. Time to put people to work!

good articles; http://financeopinionss.blogspot.com

[TJCole]

11:56 AM on 12/05/2009

Coming from Sam Alito's corrupt medieval drunken thug gang rule New Jersey, I wish it was $22 million per day..!

[nopilikia]

01:47 AM on 12/05/2009

Sorry Jersey, win/lose they make money. Until Congress change's the law they will do so.

[invest in jobs]

05:45 PM on 12/04/2009

I was hoping for FDR 2.0, but instead its become waffling 2.0, deficit 2.0, banking 2.0, Afghanistan 2.0. Iraq 2.0, Guantanamo 2.0

good articles; http://financeopinionss.blogspot.com
so much for job creation. Unemployment falls a whole .2% and the MSM is calling it a recovery. what a joke

[sonofsamphm1c]

02:32 PM on 12/04/2009

Derivatives are evil, so it stands to reason there are no cases in which an interest-rate swap saved the state of new Jersey $22,000 a day.

Well, of course not, silly me, they're evil. Evil never loses.

[nopilikia]

01:48 AM on 12/05/2009

Only in movies.

[Carolab]

02:38 AM on 12/05/2009

Looks like Bank of Montreal has some pretty unscupulous dealings in its commodities derivatives trade.

http://www.thestar.com/columnists/article/216600

[JXJASON]

05:10 AM on 12/05/2009

Carolab,

Thanks for the link. I have suggested that derivatives and trading in derivatives be illegal.

Short selling should also be made illegal.

And, finally, the Congress and the CFTC should make buyers of commodity futures contracts take delivery of the commodity when the contracts are due to expire. And increase margin requirements to 50 %. This would eliminate speculation in commodity futures.

Needless to say that if people would stop speculating and be honest, we would not have the economic problems we are now having.

[dizmo4]

02:20 PM on 12/04/2009

This type of stuff is the reason that Corzine lost his re-election bid.

Not because of some rebuke of Obama's policies as the media would have you believe.

[efmo]

03:18 PM on 12/05/2009

well, except the article says they were entered into when McGreevey was gov. & that no new ones were entered into under Corzine's watch. (not that I'm saying it was a reflection on Obama either). I think Corzine, who came from Goldman (I believe) probably understood this stuff better than McGreevey. Not that he didn't deserve being voted out - I don't live in NJ so I can't say.

[vippy]

11:45 AM on 12/04/2009

Well, one needs to know who authorized this deal and who is responsible. And then the voters need to take heed and vote them out of office, then sue that person! Someone has to be held responsible or this mess keeps up.

[ErnestineBass]

04:03 PM on 12/04/2009

Aaaaaaaaaaaay...it's Joy-zee...youze jes dig a hole and plant deh guy.

It ain't called "Deh Garden State" fer nuttin', y'know.

[Hysterian68]

11:44 AM on 12/04/2009

New Jersey is totally broke. It is in debt by over $22 billion. It owes everyone in the world money. It loses businesse to Pennsylvania and Delaware every year. It loses retirees to the Carolinas, Georgia,and Florida. Half the town mayors and city council members and state legislaturors are either in prison, indicted, or ready to be indicted.

The only people in the state with any money and who know what they're doing are members of the Mafia.

[ErnestineBass]

04:05 PM on 12/04/2009

Awl tanks to dere highly-disciplined bidnezz model.