What happens if Johnson & Johnson (JNJ) takes over Bristol-Myers Squibb, headquartered in New York City with facilities spread out over New Jersey? Wall Street brokers and Money Center banks losing jobs has to some extent been absorbed into the New Jersey economy. Mergers and acquisitions in the pharmaceuticals space could push the state into further economic contraction. I am not saying that New Jersey becomes Michigan or Nevada or California but a manageable problem could get worse.
Disclosure: At the time of this Blog entry Scott Rothbort, his family and or clients of LakeView Asset Management, LLC was long shares of SGP convertible preferred stock --- although positions can change at any time.