The Orange County Register’s Ronald Campbell reported yesterday that the County of Orange has sold off their holdings in the bankrupt Whistlejacket structured investment on Thursday for $72.4 million for a loss of $7.6 million. Whistlejacket had been in receivership since February 2008, 7 months after Treasurer-Tax Collector Chriss Street made his last two investments with the company.
Street last his investment authority earlier this year after losing a lawsuit which claimed he had mismanaged the End of the Road Bankruptcy Trust before he was elected Orange County Treasurer-Tax Collector.
County Chief Financial Officer Bob Franz told Campbell; “A 90.5 percent recovery on an investment that went into receivership is a significant achievement that resulted from careful monitoring and planning by our investment staff.â€
Read the rest of Campbell’s story here.
Politicians, (in this case, the O.C. Board of Supervisors), never learn; and the voters do not require them to learn, because both share the same financial delusions, – Derivatives.
In 1994 derivatives caused the Orange County Bankruptcy.
In a rational world one would thing that there was a “Derivatives†lesson learned.
“Whistlejacket†is a “SIV†a structured investment vehicle. Its paper chasing paper attempting to win the speculative gambling bet. http://en.wikipedia.org/wiki/Structured_investment_vehicle
It’s a derivative. It’s gambling. The taxpayers ‘cover the losses’ with higher taxes. The poor and the destitute also ‘cover the gambling losses’ by suffering the cuts in social services.
When pressed, the conservative politicians will respond: “It’s the “Marketâ€, – who could have knownâ€? When pressed, the liberal politicians will respond: “Its Wall Street/Corporate greedâ€.
Who elects these people?
Their challenger in the previous election elects “these people†when they don’t use the words “Glass-Steagallâ€.
(1)Remove Barack Hussein Obama from office
(2)Shut Down Derivatives by Restoring Glass-Steagall legislation
(3)Start NAWAPA.
http://www.larouchepac.com/credit
Have the government employees pay back the losses though a wage garnishment.
They got the high pay and benefits and Bonuses. They should be held accountable for losses.