State investors should be assumed to be unsophisticated.
Reader comment on: Governor Griebel?
Submitted by Lyle (United States), Jan 29, 2010 15:57
Every time slick Wall Street sales types get at government treasury types (state and local) they sell them bills of goods, look at Orange County, Ca., Jefferson County, Ala. (Birmingham) and other places noted in reports of the last year. The treasury types reach for max yield forgetting that there are risks because the fast talking slick salesmen bamboozle them. We should amend the law to provide that they are to be treated as an unsophisticated investor, and limit them to bank accounts and the like. Even the vaunted CalPers invested in alternative loosing investments. (And played ball with Enron). There is a terrible asymetry of knowledge here. Of course this does mean that instead of maybe making some money on investments the local politicians should bite the bullet and raise taxes.
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