The Next Bailout: Philadelphia Takes Out $275M Loan

CBS3 ^ | Sep 1, 2009 | Ben Simmoneau

[Joiseydude]

Philadelphia is taking out a short-term loan to help with cash flow as Pennsylvania's budget crisis continues.

Mayor Michael Nutter announced Tuesday the city will take out the $275 million loan from JP Morgan Chase. The loan comes with a 3 percent interest rate if paid in full by November 30. On December 1, the interest rate increases to 8 percent.

Mayor Nutter expects the city will re-finance the loan at a lower interest rate in the public markets – once Pennsylvania's budget crisis is solved.

[Red in Blue PA]

[Mr Ramsbotham]

Mayor Michael Nutter announced Tuesday the city will take out the $275 million loan from JP Morgan Chase.

A fool and his money are soon parted.

[MontaniSemperLiberi]

Isn’t JP Morgan the one that honored the California debt certificates? How long until all these governments default and we have to bail out JP Morgan?

[pnh102]

How long until all these governments default and we have to bail out JP Morgan?

Again?

[pray4liberty]

To be fair, Mayor Nutter is a good Christian man who inherited a train wreck, and now he has to clean it up.

[tcrlaf]

NO BUDGET CUTS???
What about an audit of City, Police, and Fire for GHOST EMPLOYEES???

Oh wait...
This is a DEMOCRAT-RUN city.

[Kid Shelleen]

**** Philly Metro/Delaware Valley Ping ****

[Kid Shelleen]

A fool and his money are lucky to get together in the first place..

[timestax]

Smells like something is rotten in Smelladelphia!

[2banana]

To be fair, Mayor Nutter is a good Christian man who inherited a train wreck, and now he has to clean it up.

BAHAHAHAHAHAHAHAHAHAHAH!!!!!!!

You are too funny! One far left liberal loony inherits what another far left liberal loony had done to a great city AND ADDS TO THE PROBLEMS WITH MORE far left liberal loony programs.

[William Tell 2]

Well they want to open the casinos and generate revenue - because some of the residents didn’t want all that traffic near them ( it wasn’t). Those same residents should pay a special tax

[bvw]

Ya-euh.

[pray4liberty]

Even a stopped clock is right twice a day.

[G3]

Wonder if the 3% is for two months or is it an annualized rate? If for 2 months, it works out to 18% on an annualized basis.

[Surtur]

They just didn’t realize the Michael Vick insurance would be so high.

[Tribune7]

ping

[RU88]

Those chickens really are coming home to roost. Not all of the blame can be placed on Nutter but it certainly can be put on decades of rat mayors and compliant city councils who continued to ramp up pay and benefits for their union employees as a way of ensuring their support each November. Can you really blame the rest of Pennsylvania for saying “enough is enough?” Take Philadelphia and Pittsburgh out of the equation and you'd have a Commonwealth that can easily be managed. I'm sorry but those two cities are an economic albatross around the necks of the rest of the Commonwealth.

[bill1952]

To be fair, Mayor Nutter is a good Christian man who inherited a train wreck, and now he has to clean it up.

This is a joke right? You really aren't totally brain dead, correct?

This is the same mayor nutter who is kicking the Boy Scouts out because they do not allow gays to be troop leaders while he actively promotes the city as the "Gay capital of the East?"

Christian? LOL! The man is another corrupt Philly ward leader from a long line of corrupt leaders stretching back centuries in Philadelphia. - Utter trash.