Are Small Town Treasurers Passing The Buck?
Your article "Small towns, big losses" (Finance, Dec. 6) again points out what I feel is our society's passion with passing the blame and not accepting one's own responsibility. If the investment managers of a $56 million and a $2.5 million portfolio are deemed "naive," then there lies the problem with large and unexpected investment losses. How a treasurer/investment officer can believe an investment that yields 400 to 500 basis points over the "risk-free" Treasury is also "risk-free" defies explanation. I mean no criticism to the treasurers, but, in all fairness, to suggest the primary blame is with Government Securities Corp. is incorrect. The investors can say no and should not reach beyond their level of knowledge in hopes of substantially enhancing their yield only to cry wolf when that incremental risk (for which they are compensated) comes back to haunt them.
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