Orange County faces losses from bad investments (again)
Remember back in 1994, when Orange County's bad bet on exotic securities plunged it into bankruptcy? Well, now O.C. faces new (but much smaller) losses from more bad investment. From the O.C. Register:
Whistlejacket, the investment named for a racehorse, was supposed to pay the county $62 million Monday. It didn't. Orange County Treasurer-Tax Collector Chriss Street, who bet public funds on Whistlejacket in 2007, said he still believes the county will get its money back –- though it could take years. "I'm confident that it's accruing interest and principal," Street said. But an expert on exotic financial instruments, Michael Ehrlich, said there is no way of knowing when or if Whistlejacket will finally pay off.
Photo: John Moorlach, who predicted the 1994 financial meltdown and who is now an Orange County supervisor. Los Angeles Times
Background on investment mess here.