Christie Bankruptcy Remark Amid Bond Sale Is Criticized

[Joanne98]

New Jersey Governor Chris Christie’s comments that rising health-care costs might “bankrupt” the state, made the same day of a planned bond sale, drew criticism for poor timing and may have driven up borrowing costs.

About 20 minutes after Christie, 48, made the bankruptcy reference in a town-hall meeting in Paramus yesterday, the New Jersey Economic Development Authority cut its tax-exempt school bond offering by almost half to $777.5 million and its taxable offering 50 percent to $123.2 million.

“He is scaring some people when he says the state is going bankrupt,” said Gary Pollack, head of bond trading at Deutsche Bank Private Wealth Management in New York.

“It wasn’t timed well,” said Pollack, who oversees $6 billion and said he continues to buy New Jersey bonds.

http://www.bloomberg.com/news/2011-01-14/christie-s-bankrupt-comments-draw-criticism-as-debt-costs-may-increase.html