Friday, October 23, 2009

If you think the race for NY 23 is wild

You should peek in on the Governor's race in NJ. Governor Corzine probably has to be wondering about the timing of this story...

NJ Pays Goldman Sachs for Insurance on Retired Bonds

"New Jersey taxpayers are sending almost $1 million a month to a partnership run by Goldman Sachs Group Inc. for protection against rising interest costs on bonds that the state redeemed more than a year ago.

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.

The state paid $940,000 under the agreement last month and a total of $11.4 million since the auction-rate bonds were redeemed."

So a state in serious financial peril is sending $12 million a year for insurance on bonds that no longer exist to a company reporting massive profits. Oh, and the current Governor is the former Chairman of Goldman Sachs. Yikes.

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I've said repeatedly that I avoid politics like the plague. I think there is nothing to be gained by debating political issues online.

However, since more than a few have asked, I'll offer up my analysis of the NY 23 race.

I'm not politically astute to know this for a fact, but get the sense that this race is kind of like watching the Yankees and Red Sox at the end of September after the race is over. The teams call up a bunch of rookies and has beens to go through the motions while the real players catch their breath.

I suspect that the big players in NNY politics decided to sit this one out because

1) As a special election it would draw national attention and money
2) If you win you get to turn around and start running again ASAP for 2010's election.

I imagine (maybe hope is the right word) that we'll have a stronger field of candidates in 2010 when the national spotlight will be shining on the many Senate and Governor's races around the country.

Finally, has no one inquired as to Sec. McHugh's opinion? It seems like his endorsement would carry a good deal of weight and conversely, his silence is saying volumes about the quality of the candidates.

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