New Jersey Cuts Bond Sale After Christie's `Bankrupt' Comments

Source: Bloomberg

New Jersey Governor Chris Christie has learned that talking about state insolvency may have a cost.

About 20 minutes after Christie, 48, told a town-hall meeting in Paramus today that health-care costs “will bankrupt” the state, the New Jersey Economic Development Authority cut its tax-exempt school-related bond offering by more than half to $712.3 million.

“It doesn’t help to try and sell a $1 billion deal on the same day the governor is talking about the state going bankrupt due to health-care costs,” said Mike Pietronico, who oversees $360 million as chief executive officer of Miller Tabak Asset Management in New York.

Health-care spending “will bankrupt” the state unless it requires workers to pay more for medical coverage, Christie said. New Jersey will spend $4.3 billion on health insurance this year, and that cost will rise 40 percent within four years, Christie, a first-term Republican, said at the town-hall meeting.

“Mr. Christie made a rookie mistake,” Pietronico said. “The market is very sensitive to the word ‘bankrupt.’”



Read more: http://www.bloomberg.com/news/2011-01-13/new-jersey-slashes-bond-sale-51-after-christie-s-bankrupt-comments.html

reap what you sow.

He doesn't work longer, he works stupider.

I thought we didn't need to do anything about health care....that's why we need to repeal....I just can't believe that costs would rise 40% or bankrupt a state....after all health insurance companies are in business to care for people....not to make big profits.....(sarcasm)

n/t

mains just plain old everyday health care is bankrupting the state.

programs during the booosh years is what is bankrupting the states.

Of course, he will say that the whole thing was a Lefty-Liberal plot against him
and that the Lefty-Liberals MADE him say it.

I can't wait until he's rolled out of office.

"Michael Drewniak, a spokesman for Christie, said the bond-sale cut wasn't connected to the governor's comments."

Unfortunately, the buyers of the bonds says: “It doesn’t help to try and sell a $1 billion deal on the same day the governor is talking about the state going bankrupt due to health-care costs,” said Mike Pietronico, who oversees $360 million as chief executive officer of Miller Tabak Asset Management in New York.

So for a cheap political stunt, the big-mouth guv has scared off his customers. Who you gonna believe? The ones with the foots in their mouth or the ones with the cash in their pocket that now refuse to buy?

CORRUPT mother fucker!!!

Screw the bankers.

Bonds bring a chunk of change to the state that can be used to pay for any number of things that would otherwise be impossible or impractical to pay cash for. However, it looks like NJ is going to have a little less money to spread around on school-related projects than they were anticipating. When it comes time for re-election and the Gov tries to tout his education credentials -- not to mention jobs and infrastructure -- the people ought to remember this.

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Remember Ronnie Reagan. The basic concept is to run up government debt until all the tax revenues are going to the banks and the bond holders. That is how to "starve the beast" as they said and prevent the government from serving the people.

This oaf is a complete blunderhead ... Archie Bungle is more like it ...