Somers Point Attorney Seth Grossman has an OpEd piece in today's Asbury Park Press that is potentially explosive. All New Jersey voters should read it. Click here to do so.
Grossman is a former Atlantic City Councilman and former Atlantic County Freeholder. An ally of Steve Lonegan, Grossman was also arrested in Cape May County when he and Lonegan were protesting Governor Corzine 800% toll increase scam. Grossman is also the acting president of LibertyAndProsperity.org
Grossman is calling for voters to defeat Public Question No 1, which according to media reports, the National Taxpayers Union and today's Asbury Park Press editorial would close most of the loop holes that have allowed state authorities to borrow money without voter approval.
There's a big but according to Grossman. He says that the NJ Supreme Court ruled, in a suit brought by Lonegan, that voter approval was not necessary for independent authorities' debt, but that the state is not on the hook for the debt if the voters did not approve it. THIS IS HUGE.
Wall Street geniuses continued to buy independent authority bonds because insurance companies backed the debt, just like they backed all those sub-prime mortgages that have melted down Wall Street. There is no market for that kind of insurance now, and there is no market for independent authority bonds. Thus, the market has solved our independent authority borrowing problem, at least for now, and according to Grossman's account of the the Supreme Court ruling, New Jersey tax payers are not on the hook for that $30 billion in debt that Corzine has wasted his credibility on trying to pay back.
The other big but, according to Grossman, is that is Public Question No 1 is approved, the state legislature could put New Jersey taxpayers on the hook for all past debt issued without voter approval. Does anyone think that they wouldn't do that?
I don't know Grossman, but I am inclined to believe him because this kind of scam coming out of Trenton in the name of good government and reduced borrowing is entirely believable.
New Jersey's Republican leadership, responsible Democrats, as well as all major media outlets should examine Grossman's argument, and if it is valid, should call for the defeat of Public Question No. 1.
The Healey Mirage
1 day ago
Posts
3 comments:
Art,
If NJ is scamming us again, I can understand Lesniak being behind it, but Lance? Has anyone sent it on to Lance for his comment? I think I'll do that.
JM
I'm sorry but don't these guys (Lonegan/Grossman) think everything's a scam?!
Sure there's still a loop-hole in Constitutional Amendment, but it's better than the existing law in the book.
This is classic Lonegan, use flawed reasoning to call something a scam when it really isn't and just always oppose any reforms.
Coming from Mr. Lonegan, who's against any pay-to-play bans and ethics reforms, I'll take my chances and vote YES on this bill.
Leonard Lance may not have been a great Senate Minority Leader, but frankly to suggest he'd be the cheif-sponsor of a "scam" is insulting.
Even if it is just his lawyer, you know it's coming from the horse's mouth.
Jim Gearhardt of NJ101.5 was also talking about the flaws with this ballot question yesterday and how it will not do anything to change the way things are currently done and could make things worse.
It doesn't seem as though this is just something Grossman or Lonegan, or some partisan, is making up. ... I, for one, am very skeptical of this question and will be voting against it.
Post a Comment