Pros and cons of the financial-sector rescue...

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Two interesting headlines in the WSJ: One headline says "J.P. Morgan Profit Jumps 47%."

The other reads: "New Hit to Strapped States."

So what is the new hit to the distressed states? Borrowing costs are on the rise. Here's an example of the duress states are feeling:

In Texas, J.P. Morgan Chase & Co. has taken control of a debt that it back-stopped in a 2001 deal that requires the public agency running the Houston Texans' football stadium to pay back a 30-year bond over the next three-and-a-half years.

"Think of having a 30-year mortgage, and then someone suddenly says you have to pay your house off in five years," said Janis Schmees, executive director of the Harris County Houston Sports Authority, which built the stadium. "That is pretty much our scenario." A representative for J.P. Morgan declined to comment.

What shows as profit for bankers exerts an extremely heavy burden on everyone else.

Comments

Chard said…
Hi you, so many of my peers, contemporaries and "unequals" (as a small group of us like to joke) told me "I HAD TO visit ur place here, and oh my oh my! You HAVE by 'happen-chance' garnered & gathered a collection of Benevolent Illuminati & intellectual Titans so sizable - you may have set a record! Ok, I apologize, I am being semantically randy tonight. I would LOVE to "chime in" as you implore us to, and I have resisted weighing in since November when I hit my 4th financial crash...on the day. They call me "the answer guy" in a lot of financial circles, and I feel like breaking my silence on your site - I know not why. I will explain to you clearly & concisely, for any question you have concerning the last 4 crashes: How, Who & Why. Please, coach me as to how I can chime in (This is the first time I have ever typed something on the internet! I am, older...) Respectfully yours, I am, Chard
January 18, 2011 at 10:22 PM
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