SAN FRANCISCO, Calif. /eNewsChannels/ — Investor advocate and public finance watchdog Kevin Olson has launched www.DoNotBuyMarylandBonds.com to warn Maryland bond buyers about the dangers of investing in Maryland bonds.
“Investors are expected to buy Maryland bonds and hold them to maturity,” Olson said. “But if those investors want – or need – to sell, there is no chance of getting a fair and reasonable bid.” Olson explained that most brokerages do not provide bids on the bonds – even those brokerages involved in selling or underwriting them. “If you buy Municipal Bonds, you – and your heirs – are stuck with them,” Olson added. “There is no Muni Market exchange. Just considering this, Maryland bonds are a bad investment.”
Olson started www.DoNotBuyMarylandBonds.com in response to Maryland State Treasurer Nancy Kopp’s aggressive marketing campaign. “Nancy Kopp targets retail investors through print and radio advertising, direct emails and contact, and a Web site; BuyMarylandBonds.com.” Olson explains that after new issue, Maryland investors will be on their own. “Maryland municipal bonds should come with a large-print warning label,” Olson said. “I am taking on a state-run, taxpayer-funded misinformation campaign. Investors need to be made aware of the dangers.”
Olson has tried working with State Treasurers to organize a Muni Market exchange. (www.MuniMarket.com) The goal is to get U.S. Municipalities, such as States, to “list” their bonds, similar to the way stocks are listed, in order to improve the Muni Market – especially the Muni Market secondary.
According to Olson, in a secretive meeting of State Treasurers, led by Maryland Treasurer Nancy Kopp, State Treasurers voted against investors and voted against improving the Muni Markets.
Olson also operates MuniAdvocate.com where he continues his work as a public finance watchdog and investor advocate.
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