Crashes and Crises: Lessons from a History of Financial Disasters Season 1 Episode 17 The Orange County, California, Bankruptcy

In season 1 episode 17 of Crashes and Crises: Lessons from a History of Financial Disasters, viewers will dive into the story of the Orange County, California, Bankruptcy. This episode explores the events leading up to the bankruptcy and the consequences that followed.

Viewers will learn how in the early 1990s, Orange County had invested heavily in high-risk securities and derivatives with the intention of boosting its investment portfolio. However, when the market turned against them in 1994, the county was left with massive losses. Despite repeated attempts to reverse their fortunes, Orange County was unable to recover and was forced to file for bankruptcy in December of that year.

Experts and officials will be interviewed to provide insight into the factors that led up to the disaster. Viewers will gain an understanding of how the county's treasurer entrusted their money to inexperienced brokers who engaged in risky practices and failed to properly manage their investments. They will also learn how Orange County's lack of diversity in their portfolio made them particularly vulnerable to market fluctuations and led to their downfall.

The episode will detail the impact of the bankruptcy on Orange County and its residents, including massive layoffs and cuts to public services. One interviewee will describe the bankruptcy as a "tragedy" and highlight the lessons that can be learned from it.

Viewers will also hear from experts who will offer advice on how to avoid similar financial disasters in the future. They will discuss the importance of diversifying investment portfolios, conducting proper due diligence, and placing trust in experienced and reputable brokerages.

Overall, this episode of Crashes and Crises: Lessons from a History of Financial Disasters offers a comprehensive look at the Orange County bankruptcy and its consequences while providing valuable lessons for individuals and organizations looking to protect their financial interests.