Tag Archives: new jersey

Stacy Summary:  What’s the proper word for it?  Debt slavery?  Indentured servitude?  So many schemes so few words.  We need a new Shakespeare.

• New Jersey pays Goldman Sachs for swaps on non-existent bonds

“This vividly shows the risk of entering into interest- rate swap agreements,” said Christopher Taylor, former executive director of the Municipal Securities Rulemaking Board in Alexandria, Virginia. “The world’s got to see what stupidity even the sophisticated investors like the transportation fund can get into.”

While New Jersey replaced the debt with fixed-rate securities in 2008 after the $330 billion auction-rate bond market froze, the swap, in which two parties typically exchange fixed payments for ones based on floating interest rates, isn’t scheduled to expire until 2019.