There’s a Municipal Bond Summit in New York City today at the Marriott Marquis. The attendees will be from across the spectrum within the industry including portfolio managers, rating agencies, municipal advisors, and institutional investors.
The attendees are the people that provide a market for local and state government borrowing they are suppose to be on top of the information chain for financial evaluation and lending to government. So where would they turn to find a keynote speaker?
Who would be able to provide new insight, new information? Would they look to federal government, perhaps someone from the Treasury Department? No. Would they look at a wealthy individual such as Warren Buffet, after all he knows something about markets, money evaluations? Nope wrong again.
So who is this guru they will turn too? Ah, um, ooh let me think it must be someone that knows something about borrowing money, government, and municipal budgets. Ah, um, ooh yes of course it is Governor Dan Malloy of Connecticut!!
Yes he’s the man. Connecticut must be the shining star in the municipal bond market, we must be doing something right wouldn’t you think? Oh, maybe they are just inviting one of their best customers, you know someone that borrows a lot to come to lunch in New York and giving him an opportunity to speak.
It is almost hard to believe the man that is going to guarantee jobs for municipal employees in an uncertain economy is going to tell the kingpins of the municipal bond market startling new information. Do you think they will buy what he is selling?
Do you think if you were an employer today you would guarantee future employment to your workforce knowing full well that the economic future was uncertain? Would you then expect your bank to invite you as a keynote speaker to address their underwriting department at a major luncheon? Would the next speaker stand up and say, “Now that is exactly the kind of risk taking gambler we do not want to invest in”?
Make sure there are batteries in your flashlights, food in your backpack and a GPS device on your hip because the road ahead is somewhat uncertain and the guides appear to be lost. Who will be the next speaker, Bernie Madoff?