Lessons from Orange County’s 1994 bankruptcy: John Moorlach

What lessons have we learned 25 years after Orange County’s 1994 bankruptcy?
The economy controls what the government can do. When local government bureaucrats and elected officials believe they can rely on rosy economic trends, that’s when a fiscal calamity is just around the corner. It’s a classic case of the tail wagging the dog.
It takes a few stumbles by some municipalities before others conclude that trying to be a hero by pursuing higher investment yields in the bond mar