It shouldn't be surprising that 72 hours after being hired, BlackRock
financial managers were telling the state what to do about its frozen
local investment fund.

Even before it went to work for the state, BlackRock's director of
credit analysis had produced a detailed accounting of the scarey
mortgage-backed investments that had caused a $16.5 billion run on the
state-managed fund.

Late Friday, BlackRock put that homework to use, securing the
$125,000 state contract to advise Florida what to do with its stinky
investments.

On BlackRock's safe-to-sell list: properties like AngleSea Funding
and Berkely Square Finance, both conduits for repossessions.

On the "dislike" list: Axon Financial Funding, a $9.3 billion SIV
that's in default, and Giro Balanced Funding, which BlackRock notes has
a 35 percent direct interest in subprime mortgage-related assets.

There are a few mortgage-backed investments in Florida's portfolio
that BlackRock considers keepers: Belmont Funding ("sound asset
quality") and Beethoven Funding ("fully-supported by structured
liquidity").