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Can somebody who is smarter than I am explain this to me? NJ State Bank?...

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Can somebody who is smarter than I am explain this to me? NJ State Bank?...

Old 05-16-2018, 10:24 AM
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Default Can somebody who is smarter than I am explain this to me? NJ State Bank?...

Murphy's state bank would help working families, boost local economy | NJ.com

Huh?
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Old 05-16-2018, 11:22 AM
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it is pretty simple you start a "public bank" and you get FDIC insurance

you get a bunch of depositors and you switch over the states financial services to the bank (things like taking in parking meter receipts, taxes, payroll ect)

you make sure the state only ever has a very low amount of actual money deposited at an one time (they chrun through the money fast anyway so that is easy see the story on Seattle wanting to dump Wells Fargo and being unable too and they basically churned through about $3 billion a year while having an average daily balance of about $10 million)

you get enough 'small depositors of color" that are under the FDIC insurance level and you get a bunch of stupid white guilt liberals and liberal companies to make bigger deposits over the FDIC insured level

then you start doing all the "good" by charging stupid low rates for the financial services to the state, making totally horrible loans to minority businesses that no one with an ounce of common sense would loan to or see as viable, you make a bunch of loans to stupid "green" projects, and you do all the other liberal stupidity

then in 6 years when the bank goes broke you get the FDIC to step in and back all the small depositors, the state loses about $10 million on their deposits, BUT the have made up 20X that on low fees for their financial services, ridiculously loan rates on state projects and loans to "private partnerships" that were doing "for the public good" projects that went totally broke after getting the loan and some white guilt liberal morons lose a ton of deposits as well

and then you somehow try and blame it on lack of banking regulation and over-site or on "wall street fraudsters" and the same morons that lost a ton of money keep voting for you while the small depositors could care less because the FDIC made them whole at the expense of other regular banks and their FDIC insurance payments that are getting jacked up more and more at the expense of their depositors
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Old 05-16-2018, 11:41 AM
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Originally Posted by Insider View Post
it is pretty simple you start a "public bank" and you get FDIC insurance

you get a bunch of depositors and you switch over the states financial services to the bank (things like taking in parking meter receipts, taxes, payroll ect)

you make sure the state only ever has a very low amount of actual money deposited at an one time (they chrun through the money fast anyway so that is easy see the story on Seattle wanting to dump Wells Fargo and being unable too and they basically churned through about $3 billion a year while having an average daily balance of about $10 million)

you get enough 'small depositors of color" that are under the FDIC insurance level and you get a bunch of stupid white guilt liberals and liberal companies to make bigger deposits over the FDIC insured level

then you start doing all the "good" by charging stupid low rates for the financial services to the state, making totally horrible loans to minority businesses that no one with an ounce of common sense would loan to or see as viable, you make a bunch of loans to stupid "green" projects, and you do all the other liberal stupidity

then in 6 years when the bank goes broke you get the FDIC to step in and back all the small depositors, the state loses about $10 million on their deposits, BUT the have made up 20X that on low fees for their financial services, ridiculously loan rates on state projects and loans to "private partnerships" that were doing "for the public good" projects that went totally broke after getting the loan and some white guilt liberal morons lose a ton of deposits as well

and then you somehow try and blame it on lack of banking regulation and over-site or on "wall street fraudsters" and the same morons that lost a ton of money keep voting for you while the small depositors could care less because the FDIC made them whole at the expense of other regular banks and their FDIC insurance payments that are getting jacked up more and more at the expense of their depositors
How can they blame anyone but themselves if THEY are the ones running the bank?

I'm not being a wise-ass here... I really don't understand it. It sounds to me like the State doesn't like the rates they are being charged, so they want to start their own bank that they can borrow from -- I assume they think they can borrow at a better rate. If that's the case -- that makes sense. What I don't understand is HOW they are going to be able to borrow - they are already upside-down, so how can they borrow? What are they they going to borrow against? The depositors? If so, how does that work... don't they need enough depositors to borrow against?

IMHO, this is nothing more than a scam to get the federal government to bail them out down the road. NJ is venomously pissed off at the Feds... and this is their spiteful way to shaft the other 49 States.
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Old 05-16-2018, 11:49 AM
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Originally Posted by OldPete View Post
How can they blame anyone but themselves if THEY are the ones running the bank?

I'm not being a wise-ass here... I really don't understand it. It sounds to me like the State doesn't like the rates they are being charged, so they want to start their own bank that they can borrow from -- I assume they think they can borrow at a better rate. If that's the case -- that makes sense. What I don't understand is HOW they are going to be able to borrow - they are already upside-down, so how can they borrow? What are they they going to borrow against? The depositors? If so, how does that work... don't they need enough depositors to borrow against?

IMHO, this is nothing more than a scam to get the federal government to bail them out down the road. NJ is venomously pissed off at the Feds... and this is their spiteful way to shaft the other 49 States.
stupid people do not use logic or reason they react and listen to what they are spoon fed

and they will borrow FROM the depositors and they will not have to borrow AGAINST anything because when you run the bank that makes the loans to your state you simply loan the money on the "faith and credit of the great state of nj" and then who cares if it is never paid back because the FDIC covers the small depositors that moved their money there without worry because they knew they were covered and the larger depositors are morons that will never stop voting for stupid no matter what it cost them

same thing with the "minority small businesses" and the "private/public" partnerships (that have all the risk on the private part with ZERO assets)

you simply make the loan and when it all falls apart you say that "you expected some risk and that some of the loans would under perform, but that the greater good of the ones that were successful should have more than made up for the losses"

and when you are questioned about the fact that most all of them failed and that the bank failed you point to 23 (now torn up) affordable houses and some other nonsense and then go into a rant about the federal government and the national economy being against you
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Old 05-16-2018, 12:08 PM
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The article is pure idiocy.

Careful reading will uncover that it's not that NJ is getting a "public" bank, it's just that the two authors of this opinion piece want one.
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Old 05-16-2018, 12:22 PM
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The last administration printed money to buy it's own debt. How could this be worse.
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Old 05-16-2018, 12:45 PM
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Originally Posted by mikefloyd View Post
The last administration printed money to buy it's own debt. How could this be worse.
NJ does not have a printing press and even if they did the union cost of running it would be more than the money it could print in any given time period and it would be broken half the time anyway
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Old 05-16-2018, 04:31 PM
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The people who wrote the article obviously have a problem with basic math and no hope of understanding financial processes. All you have to know is the organizations they represent to know why their attitude is what it is.

"Payment of debt costs have been prioritized over meeting the public purpose for which they were borrowed." Gee, what an atrocious act. Paying off your debts before spending on public handouts.
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