Bond buyers gambled and they should lose
To the Editor:
I usually agree with columnist Lonnie Barham. I do not agree with his opinion concerning the payment to the purchasers, known or unknown, of the 38 Studios Bonds.
As I understand the facts, these bonds were sold without any guarantee from the state of Rhode Island, and hence carried an interest rate twice or more than twice of what they would have carried had the state stood behind them. The buyers gambled and lost. Now they want it both ways ... high yield and a full guaranty of repayment, including interest. This smells like another one of those “for every 1,000 sheep, there is a wolf” transactions so popular in R.I. politics if you happen to be “in the in group.” A small group of insiders fix it so they can’t lose and always at the expense of the average Joe and Joann in R.I.
As to why the buyers’ identity is being kept from the public, that is anyone’s guess at this time. Why were the buyers’ disclosure forms not returned as required? Sloppiness, incompetence, or perhaps premeditated, not to be returned.