In the twenty-one years that have elapsed since I was Treasurer, I have not commented on the decisions of the OIC or the Treasurer's office, however, the recent decision of the OIC to hire a distressed debt manager prompts me to write to you.
Given the nature of the investment, I do not think it is appropriate for the State at all. State Government is very powerful and should use its power lightly. In this case, the State will be funding activities that will impact ordinary citizens, no doubt some of them Oregonians, in a very negative manner.
Investing is a tough business and while there may be rumors and allegations about the Lone Star investment and the underlying business model, you know better than most that the Investment Division is beyond reproach when it comes to the careful consideration and vetting of proposed investments...when it comes to distressed securities, investors who buy assets and debt have little interest in foreclosing on mortgages or, as you suggest 'abusing' citizens.