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Thread: Christie says he'll hammer Democrats all summer on tax issue

  1. #1
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    Christie says he'll hammer Democrats all summer on tax issue

    http://www.northjersey.com/news/Chri...tax_issue.html

    For PaulieC...something interesting about Governor Christie



    Christie says he'll hammer Democrats all summer on tax issue

    Governor Christie struck a conciliatory tone with Democrats on Monday and called for them to join him in the middle of the aisle and vote for a tax cut. On Tuesday he pledged to pummel them so hard for not cutting taxes that his speech the day before would “look like the good old days.”

    “After I spend a couple of months on this, the people of this state are going to be outraged at their hypocrisy,” Christie said during a meeting with The Record’s editorial board Tuesday.

    The Republican governor took time in his speech to highlight his accomplishments with the Democrats who control both the Senate and Assembly.

    Among those accomplishments is what Christie calls his crowning achievement this year — pushing through the restructuring of higher education, sending the University of Medicine and Dentistry of New Jersey’s medical, nursing and dental schools to Rutgers University and the School of Osteopathic Medicine to Rowan University.

    Even though the final product is very different from his initial proposal — Rowan is no longer taking over the Rutgers-Camden campus — Christie said he’s happy with what he got.

    “At the end of the day what I wanted was a stronger Rutgers in New Brunswick, a stronger Rutgers in Camden or higher education institution in Camden, however it took form, and I wanted to get rid of UMDNJ, because it was an abject failure,” Christie said. “It seems that I checked all three boxes.”

    Christie worked with Senate President Stephen Sweeney, D-Gloucester, and negotiated that plan with Demo¬crats, reaching an agreement after several closed-door negotiation sessions. Christie says he was even willing to give up his own 10 percent across-the-board income tax cut, which would be phased in over four years, in favor of Sweeney’s tax plan.

    But Sweeney, who appeared on two radio shows Tuesday, said he proposed his 10 percent income tax credit, which is tied to property taxes and capped at incomes less than $400,000, before state revenue figures came in much lower than anticipated.

    Christie said he’s confident that state tax collections will pick up, especially with companies on Wall Street doling out bonuses at the end of the year. But while the Democrats want to wait until January to decide whether they can deliver tax relief, Christie thinks the latest revenue figures will show the funds are available now.

    “We’ll see what happens in June,” he said. “I’m relatively optimistic. But, you know, they said we’re not going to hit our numbers in June. If we hit our numbers in June, maybe it’s time for them to shut up.”

    But Sweeney said that Democrats are being responsible.

    “He anticipates that we’re fine, and don’t worry about the numbers,” Sweeney said on “The Governor David Paterson Show” on WOR-710AM. “That’s not true. We have to worry about the numbers.”

    Christie said he plans to continue hammering them all summer, traveling the state and holding town hall events featuring a clock that Christie says will count how many days the Democrats are holding tax relief hostage.

    That pledge is a contrast to his speech on Monday, when Christie implored legislators to not act like politicians in Washington, who he said, “talk at one another, not to one another.

    “Here in New Jersey we aspire to talk to each other; we aspire to like the people we work with across the aisle; we aspire to take the time to figure out how to reach a place of compromise to improve the lives of all of our citizens,” he said.

    But on Tuesday, he said the Demo¬crats were hypocritical for crafting a spending plan based on his revenue figures, while refusing to grant what he calls an immediate tax cut.

    Sweeney said Democrats put the money in surplus and will deliver a tax cut, if the funds are there.

    “We put money in the budget and I’ve told people I’m cheering on these revenue projections, and I’m hoping they happen for one reason, that means people have gone back to work,” he said on NJ 101.5FM.

    And he said there is no need for Christie’s “political theater.” Because the governor’s tax cut wouldn’t go into effect until residents file their income taxes in April, there is time for Demo¬crats to vote on it if there’s revenue to support it.

    “A real tax cut — and that’s what we want — creates jobs when it’s real,” Sweeney said on WOR. “What we’re saying is we’ve accepted his numbers but we’re seeing the economy improve not in the way it needs to in this state. New Jersey’s unemployment is high.”

    Although Christie hasn’t decided whether he’ll seek another term, he expressed doubt that the Democrats would grant the tax relief next year, when he is up for reelection.

    “You think the Democrats, with the number of Democrats in the Legislature who want to run for governor, are going to give the incumbent governor a tax cut in the January of his election year?” he said.

    Email: hayes@northjersey.com

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    Gov. Christie puts positive spin on N.J.'s jobs numbers

    http://www.nj.com/news/index.ssf/201...itive_spi.html



    TRENTON — Gov. Chris Christie today said he's sticking with his Jersey Comeback narrative, despite a jump in the state's unemployment rate.

    “The numbers indicate that the comeback is still very strong," he said in Statehouse news conference.

    June saw an increase in the state's unemployment rate from 9.2 percent to to 9.6 percent, which is above the national average of 8.2 percent. The state-to-national disparity hasn't been this pronounced in more than three decades.

    Starting with his State of the State address in January, Christie has proclaimed the beginning of a Jersey Comeback, complete with a backdrop banner erected at the town halls that have become the hallmark of his term. No such sign accompanied the first in a series of events the administration is calling “Endless Summer conversations” that was held last week in Manasquan. Christie said observers shouldn't draw any conclusions from the change in approach.

    "Remember what the sign said? The New Jersey Comeback has begun," he said. "It's not finished, so it's begun. It's begun, it's doing well. So we're going to continue to see positive things happen in this state."

    The Republican governor noted the state created 9,900 jobs last month.

    “What we’re seeing here… is New Jerseyans are so optimistic that things are getting better that more and more of them are reentering the workforce," he said. "When more and more of them re-enter the workforce you have to create jobs at an even faster rate to get the rate to go down, not up.”

    Senate President Steve Sweeney (D-Gloucester) said he was reluctant to play politics with the report.

    "I don't want to be critical of anything until I actually have a chance to digest the numbers and find out what's real and what isn't," he said, after Christie signed legislation he sponsored to expand solar energy options.

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    N.J. unemployment rate rises to 9.8 percent in July, state loses 12K jobs

    http://www.nj.com/politics/index.ssf...rose_in_j.html




    New Jersey's unemployment rate reached record heights in July, climbing to 9.8 percent as the state shed 12,000 jobs, according to preliminary figures released today by the state Labor Department.

    By hitting 9.8 percent, the state crossed into some of the roughest economic territory it has seen in decades. Experts said New Jersey businesses are still beset by uncertainty three years after a crippling U.S. recession, while government payrolls at the state and local levels continue to shrink.

    Thew new jobless rate, rising from 9.6 percent in June, was slightly above the post-recession peak reached in early 2010, and state Democrats lunged at Gov. Chris Christie's economic record weeks before the governor is set to deliver his biggest economic speech yet at the Republican National Convention in Tampa, Fla.

    The last time the rate was higher was 1977, according to data from the U.S. Labor Department. New Jersey now trails the U.S. average — 8.3 percent — by its widest margin in three decades.

    “The national economy has been sluggish and, realistically, we can’t be exempt," said Charles Steindel, chief economist at the state Treasury Department. "Given the national softness and the strength of our job gains in May and June some fallback was likely.”

    Christie administration officials stressed that the new figure was preliminary and could be revised downward next month. They pointed to January 2010, when the first reports showed the unemployment rate had surged to 10.1 percent but was later adjusted to 9.7 percent.

    During the first seven months of the year, New Jersey's employers have added 25,000 net jobs. But throughout that same stretch, the jobless rate has refused to go lower. July was the fourth straight month of rising unemployment in the Garden State, which has one of the highest rates in the nation.

    Connecticut also recorded an increase in July, from 8.1 percent to 8.5 percent, but it added 5,100 jobs, its labor department said today. New York rose from 8.9 percent to 9.1 percent while losing 3,700 jobs.

    From a year-over-year perspective, New Jersey last month had 40,000 more jobs than it did in July 2011, said Patrick O’Keefe, director of economic research at JH Cohn in Roseland. That marked a decrease from June, when the year-over-year gain was above 60,000.

    "What businesspeople see is a blizzard of question marks,” O'Keefe said. “Where they can defer decisions, they are. Where they can’t, they are minimizing their commitment.”

    Christie rang in the new year with unbridled optimism for New Jersey's economy, touting a "Jersey Comeback" in town halls across the state and making the case for a 10 percent tax cut that state Democrats are blocking until and if the state's recovery quickens.

    A spokesman for the governor, Kevin Roberts, said the latest numbers showed New Jerseyans desperately need the tax break. Regardless of when it gets signed into law, the tax cut would not kick in until 2013, but Roberts said cementing it sooner rather than later would spark growth.

    "Our small businesses and job creators cannot afford to invest and hire without knowing that taxes will be going down the next three years in New Jersey," he said, adding that Democrats are "putting the brakes on New Jersey's economic recovery" by waiting until the end of the year to make a decision.

    At a time when voters across the country are focused on the slow economic recovery, Christie is set to give one of the most high-profile speeches this month at the Republican convention, where he plans to make the case for Mitt Romney as the best choice to lead an "American comeback" from the White House.

    Christie told USA Today this week that he will focus on his experiences in New Jersey, making an "emphatic" argument for the GOP approach.

    But state Democrats took aim at Christie's "Jersey Comeback" mantra today, saying the economic picture has worsened under the Republican governor.

    "There is no way to interpret this other than bad," said Senate President Stephen Sweeney (D-Gloucester), the state's top Democrat. "I don't want to hear any spin. I don't want to hear anything remotely close to painting this as good news. I don't want a press conference touting these numbers as if it's a 'mission accomplished' moment.

    "What I want to see is this administration admit it is failing in terms of getting people back to work. What I want to see is a solid plan from this administration on how we create jobs in New Jersey."

    Assembly Majority Leader Lou Greenwald (D-Camden) called it "the highest unemployment rate since Jimmy Carter."

    "The numbers speak for themselves," Greenwald said. "It's clear that Christie's 30-second slogans. like the 'Jersey Comeback', are not putting food on the table."

    Assemblyman Gary Schaer (D-Passaic), vice chairman of the budget committee, said lawmakers remain open to cutting taxes next year, but he doubted that a cut, by itself, would be very effective in pushing down the jobless rate.

    Criticism also came from the right. Steve Lonegan, the state director of Americans for Prosperity, blamed the state's high taxes and "government intervention in the marketplace."

    "This is a crisis time and it requires drastic action and you can't do it by tweaking around the edges," Lonegan said, calling for a flat income tax and an end to economic subsidies.

    For more than a year, New Jersey had been lowering its unemployment rate from its recent peak in early 2010, when the rate was 9.7 percent. But this spring, the rate began shooting upward again.

    State officials, using data from the U.S. Labor Department, also adjusted the total number of jobs gained in June, from 9,900 to 7,300.

    The labor department said both the private and public sectors saw their payrolls shrink in July, shedding 7,100 and 4,900 jobs, respectively. Job losses were led by the professional and business services sector, which shrank by 3,900 jobs, followed by the loss of 3,000 manufacturing jobs and 2,700 in construction. Gains were led by the transportation, trade and utilities sector, with 1,600 new workers.

    “New Jersey’s labor force participation rate and the percentage of our population who are employed remain above the national averages," Steindel said. "Considering we have seen job growth in nine out of the past 11 months, we anticipate that job growth should resume and start to put some downward pressure on unemployment.”

    Star-Ledger staff writers Ed Beeson and Jarrett Renshaw contributed to this report.

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    Christie defends 'New Jersey Comeback' amid rising jobless numbers

    http://www.northjersey.com/news/Chri..._policies.html


    Governor Christie strolled along the Asbury Park boardwalk Monday – taking a break from writing his keynote speech at the Republican National Convention – and defended the “New Jersey Comeback” in the face of rising unemployment numbers.

    “It’s really sad that you have elements of the media and Democrats that are rooting for failure,” Christie said. “You’ve never seen the Democrats so excited as you saw them last week when unemployment went up.”

    Christie was at the shore town to promote the impact of clean beaches and waterways on the state’s economy, but spent much of his time defending his economic policies.

    Monday’s event was the governor’s first public appearance he was named the convention’s keynote and the first since Republican presidential hopeful Mitt Romney named his vice presidential pick, ending speculation that Christie would be the running mate.

    The boardwalk visit was also the first since two big economic announcements last week: July tax revenue came in 5.5 percent below projections and the state lost 12,000 jobs and unemployment jumped to 9.8 percent last month – the highest rate since Christie took office in Jan. 2010.

    “I get so weary of the press’ desire to keep writing negative stories,” Christie said. “The numbers of jobs we create has nothing to do with the unemployment rate.”

    Christie is relying on lofty revenue projections to sustain a $2 billion spending increase in the current budget cycle, which ends June 30, including funding for his proposed income tax cut, which Democrats have been hesitant to enact.

    Senate President Stephen Sweeney, D-Gloucester, called Christie’s remarks misleading.

    “Last month, New Jersey lost the most amount of jobs of any state in the entire country,” he said in a statement. “Instead of working on a plan to fix our skyrocketing unemployment rate, Governor Christie is trying to distract people from his administration’s complete failure on this issue.”

    Christie said the state has added private sector jobs in nine of the last 11 months. But New Jersey lost 7,100 private sector jobs and 4,900 public sector jobs in July as the nation saw an increase of 163,000.

    Sweeney turned Christie’s own words against him, quoting the Republican’s criticism of his Democratic predecessor Gov. Jon S. Corzine when he was running against him in 2009.

    “Keep in mind, this is the same person who, as candidate Christie, said, ‘I don’t know how when unemployment continues to go up that you can say that's a success,’” Sweeney said. “Maybe it’s time the governor start looking in the mirror.”

    Christie launched his “New Jersey Comeback” tour earlier this year holding town hall style events across the state to tout pension and benefits reforms, capping local property taxes and creating more than 60,000 jobs since taking office.

    He rebranded the events last month visiting beaches and calling it his “Endless Summer Tax Relief Tour,” as he pushed for legislators to return to Trenton to enact his income tax cut proposal – a mantra he continued while in Asbury Park.

    “It’s begun,” he said of his comeback. “And the last piece of this is going to be, ‘Are we gonna in fact make taxes more reasonable?’ ”

    But Monday’s event was not part of that series, instead it was billed as the “Promoting the Jersey Shore Press Conference.”

    Although he declined to discuss the specifics of his keynote address – only to say he’s on his seventh draft and is working with a close group of friends and advisors – Christie is expected to bring his “comeback” theme to the national stage in Tampa on Aug. 28.

    Christie, who was rumored to be in the running as a vice presidential candidate, said he received an email from GOP presidential candidate Mitt Romney when he was flying back from a West Coast fundraising trip Aug. 10 saying he was not the pick.

    “He had decided to go in a different direction,” Christie said Romney told him after landing. “We had a nice conversation.”

    Christie reiterated that he had no interest in leaving New Jersey or becoming vice president and said he supports Romney’s choice of Wisconsin Rep. Paul Ryan and is happy to give the keynote.

    “I like Congressman Ryan,” Christie said. “He's a good guy.”

    With only a week until he speaks before his largest national audience to date, Christie also refuted claims that unemployment is at its highest in 35 years, saying the federal Bureau of Labor Statistics, which compiles the figure, will refine the number in coming months before issuing a final tally of unemployed in the state.

    “They readjust almost always downward,” Christie said.

    Democrats have seized on the latest revenue and jobs numbers saying they’re evidence of a “Jersey Setback.”

    But Christie said they’re “micro analyzing” the monthly reports adding that Democrats’ focus on the July revenue figures is, “their attempt to justify their unwillingness to cut taxes for the people of New Jersey.”

    The Democrats have defending their decision to wait until January to consider a tax cut, saying they want to ensure Christie’s revenue projections come in on target.

    Email: campisi@northjersey.com, hayes@northjersey.com


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    "Christie is bad! whirrr! click!"


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    Quote Originally Posted by Buster View Post

    For PaulieC...something interesting about Governor Christie
    Until costs in NJ come down... (public pensions are the highest cost after public salaries) many companies will continue to leave NY, NJ etc.

    What would you propose Christie do to attract business to NJ?

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    This thread was more entertaining when Buster was the only one posting in it.

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    Quote Originally Posted by southparkcpa View Post
    Until costs in NJ come down... (public pensions are the highest cost after public salaries) many companies will continue to leave NY, NJ etc.

    What would you propose Christie do to attract business to NJ?
    To answer your question:
    I don’t think there is much a Governor can do. But since Governor Christie blamed the Economy on Corzine and then touted how his policies have started a “Jerzy Comeback” he is in a bad political spot. Basically Demand is down, the wealthy are sitting on their cash and interest rates are super low. He (we all) needs a spike in demand and thus spending. But he is aligned with those opposed to that. So he should hope the Democrats don’t come up with a viable candidate.

    To answer your statement about NJ public workers:
    Governor Christie has been stumping for Mitt Romney bragging how he solved NJ's pension issues. This happened in June 2011, pay attention. Therefore, I would advise him to not take up your argument. Also, I'd advise him to drop the "Jerzy Comeback" rhetoric with a statewide 9.8% unemployment. He is a popular Governor and people will overlook a BS line once or twice but an entire summer is pushing it.

    As for the New Jersey exodus:
    Could be folks are leave (or not coming to) NJ because it no longer is an easy commute to a high paying NYC career. And since he killed the tunnel that would eventually solve that problem he has to keep mum on that, too.

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    Stile: Christie livid over Dems' use of tax data

    http://www.northjersey.com/news/opin..._tax_data.html

    Chris Christie doesn't like to lose control of the Chris Christie narrative.

    His carefully crafted YouTube videos make him look like a hero. His town hall-style meetings put him in control of a stage and a microphone. For the most part, Christie gets to say what he wants without being challenged. The crowds lap it up. It's all a smashing success.

    But the ruling Democrats, who have watched Christie with a mixture of fascination and fury, have finally found a tool to craft their own narrative of Christie's fiscal stewardship - those grim, monthly reports detailing the state's tax collections, compiled by his own Treasury Department.

    And it's driving him bonkers.

    So, with his characteristic flair, the governor lashed back - at least symbolically - on Friday by vetoing a minor piece of legislation requiring him to deliver monthly revenue reports to the Legislature. No one saw it coming, and why should they? The bill, backed by both parties, simply gave the force of law to an executive order Christie himself had signed on his second day on the job in 2010.

    It was the veto language that caught everybody's attention. Christie ordered that the bill be rewritten to include a $10,000 fine for "unauthorized" release of revenue data. It was a clear shot at Democrats who have been playing hardball over the summer, leaking data that raised doubts that New Jersey can afford the governor's much-touted income-tax cut and that his rosy economic outlook matches reality on the Jersey street.

    Democrats, suddenly role-playing as fiscal conservatives, used the less-than-stellar revenue reports to deny Christie a tax cut in June, two months before he delivered his keynote speech to the Republican National Convention. Democrats have said they might agree to a cut if Christie's estimates hit their mark in January, but the first revenue reports are not promising.

    But it was another pre-convention kerfuffle that spurred Christie to write Friday's veto. A legislative report in mid-August suggested that his current budget might be saddled with a $542 million shortfall from the previous year, which, if true, could virtually wipe out the surplus set aside for emergencies.

    Although the actual shortfall later proved to be a far lower $240 million, Christie was trumped by a leak. He was suddenly in a defensive crouch, batting down a counter-narrative to his upbeat outlook.

    "You have these doom-and-gloom Democrats down there who, just for their own political purposes, want to continue telling people that what they are seeing in New Jersey about the state & doing better is not what they should believe," Christie said Monday, explaining his veto. "I wish they'd stop playing politics and start doing."

    Democrats voiced outrage at the proposed $10,000 fine, accusing Christie of trying to choke off the flow of routine revenue data to the Legislature because it might not suit his public relations strategy.

    "We all want the revenues to increase, but just because we have a couple bad months of reporting doesn't mean we have the right to suppress that information from a co-equal branch of government and, more importantly, the public," said Sen. Paul Sarlo, the Wood-Ridge Democrat.

    The fact is that, despite the drama, Christie's veto changes nothing. Although it effectively kills the legislation, Christie's executive order - requiring him to release monthly revenue updates by the 10th day of each month - remains in effect.

    And there will be no suppressing of revenue data; the administration will continue to share tax-collection data whenever requested by the Office of Legislative Services, the non-partisan research and legal arm of the Legislature. A 1948 law obligates them to do so, officials said.

    Christie has a point that the Democrats are playing politics with his budget. But he invited this kind of heightened scrutiny by cobbling together a $31.7 billion budget based on an aggressive bet that revenues would grow by 7.3 percent, the most optimistic forecast in the nation. Things looked so promising, Christie said in January, that the state could afford an across-the-board tax cut.

    The economy has refused to cooperate, and each successive monthly revenue report, whether released on schedule or leaked, has belied Christie's now-mothballed "Jersey Comeback" slogan. Democrats, knowing that Christie wanted to enact the tax cut this year, saw the budget as a Christie campaign document. It's doubtful that the veto threat will deter them from leaking future OLS memos when the numbers make Christie look bad.

    The governor said Monday that the $10,000 fine was also necessary because leaks of preliminary revenue numbers could scare away investors from snapping up New Jersey bonds.

    "If they're [Democrats] & serious about wanting to have a positive effect on the markets, they would put a provision in there to penalize people who leak stuff to all of you before stuff is final," Christie told reporters, adding, "But I'm going to stop having this month-to-month circus."

    Email: stile@northjersey.com

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    he's just angry about upcoming bacon shortage

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    Quote Originally Posted by Timmy® View Post
    he's just angry about upcoming bacon shortage
    +1

    Sent from my SGH-T679 using Tapatalk 2

  13. #13
    .....since Governor Christie blamed the Economy on Corzine.....
    This Corzine?

    Jon Corzine: Criminal Or Just Plain Old-Fashioned Stupid?

    Forbes.com

    It is a story all too common today that our society is practically anesthetized to it: Securities laws repeatedly failing to protect the trusting investors from unscrupulous money managers. MF Global is a little different twist. Unsuspecting trading clients are bilked to pay for the highly leveraged “cowboy” trades of their very own clearing house which turns out to be nothing but a hedge fund in disguise. At bankruptcy filing date MF Global had $40 a billion balance sheet and a paltry $1.4 in equity. Its annual revenues were only $2.2 billion. When you include up to $16 billion in off balance sheet liabilities you get to a leverage ratio of about 40 to 1……..not a lot of room for errors.

    The Trade Structure
    The trades that “brought down the airplane” were quite prosaic in the arcane world of hedge fund trades. It was a simple highly leveraged “carry trade”. Corzine bought $6.3 billion of the sovereign debt of Southern European PIIGS countries and financed it through a repurchase agreement or in trade jargon, “repos”. The purchased bonds had a much higher coupon payment rate than the loan rate that MF Global would pay to the “repo” lender hence MF global would be making a guaranteed spread or “carry”. When (if) the bonds ultimately matured and repaid 100% of their face amount, then MF Global contractually would use the bond proceeds to buy back or “repurchase” the bonds from the lender, thus repaying the “repo” loan. For example, JP Morgan (JPM) or Bank of America (BAC) took in Spanish bonds as collateral that MF Global had just purchased and made a loan that matured concurrently with the bond maturity date. If the bonds were $1 billion maybe JPM or BAC would loan on the order of $980 million and MF Global would come up with $20 million. The $20 million or, in this case, 2% of the purchase price is the “haircut” that JPM wanted from the purchaser. The “haircut” or margin required is a negotiated amount between borrower and lender. To a highly creditworthy borrower the “haircut” may even be 0. That is the lender would lend all the purchase money. The interest rate environment of 2011 when these trades occurred is not significantly different than the rate landscape of today. JPM probably lent on a floating or fixed LIBOR based formula, something like LIBOR +40 basis points or just Libor +40 as it would be quoted. As short term LIBOR was less than 25 basis points (or .25 of 1%) then all in all, MF Global borrow rate was most likely something less than 1% (.25 +.40=.65 of 1%). Say the rate on the Spanish bond was 5% and Corzine was able to purchase at a 10% discount to par (100) or 90% of face value. Then the “carry” would be the 5.55% coupon (remember the discount) less the .65% loan rate or 4.90%. At maturity if the bond paid in full as planned then using extreme leverage the return potential quickly gets into triple digits.

    The game plan that Corzine had designed was conceptually sound. While he was admittedly purchasing the “junk” credits of Spain, Portugal, Italy, and Ireland the reality was, at the time, there had never been a Eurozone sovereign default and the zeitgeist was to preserve the “union” at all costs. Further, only short duration bonds, presumably with maturities of two years or less, were bought. This greatly reduced the risk of the trade. So as bonds would mature, presumably Spain and the other countries would simply “roll over” or sell new bonds to retire the maturing ones. Worse case, the assumption was the ECB would step in and purchase bonds through EFSF or ESM or the direct bond purchase program in place. All was copacetic until the plane hit some severe unanticipated thunderstorms, with lots of lightning. As part of the “repo” agreement, the amount of margin or “haircut” was subject to be increased as the price of the collateral (the bonds) fluctuated and were “marked” to the market on a daily basis or if the credit of the underlying borrower (MF Global) deteriorated. Headlines swirled, Greece caused turmoil for the entire Southern Europe bond market. On October 24, 2011 Moody’s, due to the European exposure downgraded MF Global debt to one level above “junk”. One day later MF Global reported a $191 million quarterly loss. The following day, the 26th, Moody’s hammered Corzine’s firm with a further two notch downgrade placing the firm at Ba2, or in solid “junk” territory. Net, Net, MF Global was now repeatedly being called for more and more margin as both their company credit and the prices of the European bonds deteriorated rapidly. It was a liquidity crisis. With credit lines completely used up……where was there left to turn?

    Crossing The Line

    On October 26th and the ensuing five days before the bankruptcy, who did what, when, and why, on whose instructions is a main crux of the issue. On the 26th $615 million of segregated customer funds were approved for transfer by assistant treasurer Edith O’Brien from accounts at JP Morgan. This transfer was supposed to be a loan that was to be repaid by the end of the same business day which would have been legal. Needless to say the funds were not returned. On the 28th per e-mail trails, Corzine ordered a $175 million transfer to cover an overdraft at JP Morgan.

    Ms. O’Brien tapped another $200 million of customer funds to meet this obligation. We know there were many more transactions wiring customer funds out of what were supposedly statutorily segregated at the broker dealer level. Hundreds of millions of the customer money was funneled to an MF Global UK subsidiary. Ultimately, MF Global Inc. bankruptcy trustee James Giddens found as much as $1.6 billion of misappropriated customer funds.

    Nobody Knows Anything

    “I simply do not know where the money is” Corzine droned at a Congressional hearing. OK, if you don’t then who does? There is some evidence now that this money filching scheme began as early as August 2011 over two months prior to the October 31 bankruptcy filing. Mid –level employee Edith O’Brien pleaded her Fifth Amendment rights when she was called to testify about her role in the scam. In what was surely dozens of illegal transactions, miraculously there is a dearth of memory cells purporting any knowledge of the purloined funds. Between the CFTC, the CME, the SEC, and the Justice Department investigations, astonishing and incredulous am I that none of these agencies could piece together enough forensic accounting evidence to levy even a few indictments against Corzine and his henchmen. Lurking conspiracy theorists say MF Global was a client of Eric Holder and his deputy AG Lanny Breuer’s former law firm of Covington and Burling and Corzine is a huge Obama fundraiser so therefore any probes will be superficial and inconclusive. Well, that has certainly been the headlines in recent days………no criminal charges are expected. I guess you’re not paranoid if they’re out to get you.

    From all accounts Corzine was a very hands-on manager. He relentlessly walked the trading floor and was chief architect for all the sovereign debt positions. He is an expert on the asset class; he used to trade sovereigns back in his Goldman days. Consequently, because of the extreme leverage employed even small moves in interest rates could mean big margin calls. Any person with any attention to detail would be constantly monitoring all trades and calculating exactly what margin may be due and where the money to fund them was going to come from. Corzine did not get to be head of Goldman Sachs, a senator and governor of New Jersey without being an very bright, attention to detail oriented person. Anytime a big margin call came in, who do you think was notified first? Ultimately whose decision was it as to where the money to meet the call was going to come from? It’s perplexing why can’t regulators trace over a billion dollars in wire transfers? “Judicial Watch” got so tired of asking they have filed suit under the FOIA requesting all documents relating to missing customer funds. Trustee Giddens is so angry about desultory regulators; he vows to seek state venues for criminal action. So unless Mr. Corzine received some unclosed head blow which resulted in a rapid cognitive decline, the odds are, to me, thin indeed that he remained ignorant of MF Global machinations.

    The sad thing is that Corzine just ran out of time. Most of his European bets have already been refinanced and paid off in full. As they say in accounting, it was just a “timing difference”. Except in this case someone misappropriated $1.6 billion of money that didn’t belong to them. Will Mr. Corzine realize his next dream of starting his own hedge fund or will he get to spend the next decade or two doing what I think he should be doing, TIME, and preferably not at some “club fed”. Tell me what you think by replying to this article JAIL or NO JAIL for Mr. Corzine.

  14. #14
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    Quote Originally Posted by Timmy® View Post
    he's just angry about upcoming bacon shortage
    Lol

  15. #15
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    Gov. Christie vows to veto all new spending until Legislature cuts taxes

    http://www.nj.com/politics/index.ssf..._veto_all.html


    IMHO (and the majority of NJ pollsters) Governor Christie could play it safe and get reelected in a cake walk. But that does not seem to be his way.



    Cherry Hill— In a fiery 40-minute speech to business leaders today, Gov. Chris Christie launched a new tirade against Democrats and vowed to veto all new spending until the Legislature cuts taxes.

    The Republican governor ticked off a list of eight bills, sarcastically deriding them as “very important” and their Democratic sponsors as “well known fiscal conservatives” and “solider(s) in war of fiscal prudence”.

    “Let me tell you something, this supplemental spending, they might as well keep it in their pockets,” he told hundreds at an annual Southern New Jersey Chamber of Commerce luncheon. “It is not happening. Not under any circumstances. They want to pass bills that spend more money. I will veto every one of them with this message: Give the people their money back first before we spend another dime.”

    Of the bills Christie singled out, the biggest-ticket item is a bill sponsored by Assembly Budget Chairman Vincent Prieto (D-Hudson), state Sen. Nicholas Sacco (D-Bergen) and Senate Budget Chairman Paul Sarlo (D-Bergen) that would reimburse municipalities that have a lot of tax-exempt cemeteries. The cost is $66 million.

    Assembly Democrats responded with a reminder that the state’s unemployment rate is 9.9 percent and that property taxes have gone up 20 percent under his administration.

    “Based on the governor’s comments, he’s apparently opposed to enhanced domestic violence protections, improved child safety, protecting the disabled from discrimination, finding jobs for veterans and protecting South Jersey residents from the adverse impacts of dredging," spokesman Tom Hester Jr. said in a statement.

    "That’s unfortunate, but not surprising considering Gov. Christie’s unrelenting disregard for property tax relief, job creation, the middle-class and poor and women’s health care. "

    But in his talk Christie ramped up the rhetoric, pleading with the audience to stand up to what he called the hypocrisy playing out in the capital: “It’s ridiculous and you need to get engaged. You can’t count on me to do this myself… You need to call BS on them on this.”

    He said Democrats “with their handmaidens in the press” talk about how there’s no money to cut taxes “while at the same time, in the dark halls of Trenton, they’re passing bills for more spending. Now listen, hypocrisy is a given in politics, but this is like over the bar.”

    He said lawmakers have passed more than 20 bills without off-setting the spending with budget cuts.

    “Let’s get real here, ok. The people who really have responsibility in this state, you for running business and creating jobs and me for providing adult supervision in that circus down in Trenton,” he said, interrupted by laughter, “we need to call those people out. I’ve been pretty nice up until this point.” He paused for more applause. “That ends today. It ends today. I am tired. I am tired of them lying to the public and getting away with it. They have the money to cut your taxes. They have it right now. All they need to do is cut spending. Instead of cutting taxes… they’re adding tens of millions to spending…”

    “If this is hard to follow, imagine if you’re me. You could go home and forget about this if you want. This is my life,” he said, waiting a beat. “Unfortunately, it’s yours, too.”

    Christie continued with this theme at at town hall in Lacey Township this afternoon.

  16. #16
    Democrats are scared of Chris Christie because he shows how cutting taxes create jobs. NJ's economy is booming.

  17. #17
    Quote Originally Posted by detjetsfan View Post
    Democrats are scared of Chris Christie because he shows how cutting taxes create jobs. NJ's economy is booming.
    You're such a ****ing loser...

  18. #18
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    Quote Originally Posted by AlwaysGreenAlwaysWhite View Post
    You're such a ****ing loser...
    Vincenzo can't help himself

  19. #19

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