Commentary
Having served in public office for a quarter century, I marvel at the fiscal illiteracy of many elected officials. Now that I have a little time to reflect, I’m amazed at how a flim-flam-type salesman can come in and offer an idea where the only real winner is the salesman.
Orange County and its cities have become internationally famous for playing the sucker when an attractive scam is offered and taken.
Thanks to Orange County Treasurer-Tax Collector Robert L. “Bob” Citron, 187 agencies in Orange County and around the state deposited taxpayer dollars into his Orange County Investment Pool (OCIP). Why? Because the OCIP was outperforming banks and money market funds in achieving high yields. Why? Because Citron was borrowing to invest (carry trade), and he loaded up on derivatives known as inverse floaters….