ORANGE COUNTY IN BANKRUPTCY : EDITORIAL COMMENTARY ACROSS THE NATION

The nation’s newspapers and magazines have had plenty to say about Orange County’s plight:

If I were a resident of Orange County, Calif., and had just learned that the county had lost $1.5 billion of its $7.5-billion pool in derivatives trading, I would want an answer to the question, “Who won it?”

ORLANDO SENTINEL, DEC. 8

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In the mad dash for the exits of the Good Ship Orange County, the swifties of Wall Street have nothing on the politicians of America. Our elected officials profess to be just shocked and appalled that a government fund could have been allowed to run up overripe returns year after year.

WALL STREET JOURNAL, DEC. 12

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The shock waves from the Orange County disaster will be felt for months. In the short term, other California counties may find it tough to raise funds....The meltdown also could invite an era of far more intense regulation in both the municipal and derivative markets--both of which, until now, have largely avoided Washington’s gaze.

BUSINESS WEEK, DEC. 19

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Put simply, Robert Citron was gambling with public money on Wall Street and lost. He might better have gone to Las Vegas.

BUFFALO NEWS, DEC. 7

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Derivatives aren’t a pyramidal house of cards; in fact, derivatives aren’t dangerous at all. What’s dangerous are the naive treasurers who delude themselves into believing that they are financial wizards, smarter than professional traders on the world’s fastest markets.

BARRON’S, DEC. 5

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Newport Beach--life appears normal here. The morning traffic still clogs the freeways, Disneyland remains open, shoppers line up at the South Coast Plaza mall to see Santa, and work crews continue to lay asphalt for new roads. You can’t hear the gravy train derailing despite news that the county lost $2 billion in its investment fund.

SAN FRANCISCO CHRONICLE, DEC. 13