We are finally done with a seemingly interminable election season and it's safe to say there is a feeling of hope and optimism across the country. But as President-Elect Obama has said, now the real work begins.

I believe the financial crisis in this country is only beginning to unfold. On the surface, we see reports of increased home foreclosures, significant stock drops, and companies closing their doors, laying off thousands.

But my bigger fear is that we are just now starting to see the second wave - a more damaging wave - caused by the economic tsunami.

The New York Times ran a powerful story last weekend. The authors Charles Duhigg and Carter Dougherty, tell the story of school districts in the Midwest that were sold exotic investment instruments with promises of steady returns and investment security. The authors looked at Whitefish Bay, Wisconsin, a town that is like most others. The city leaders, trying to fill a hole in the school district's retirement plans without raising taxes, joined four other school districts and collectively decided to invest $200 million in safe, corporate bonds.

Or so they thought.

Following the advice of their advisors, they borrowed $165 million from an Ireland-based bank, Depfa. Following the direction of their advisors, they invested the borrowed money in collateralized debt obligations (CDOs). Every step of the way, the city's financial advisors - who, of course, made a profit from the deal - calmed fears and told the city that the investment was safe.

We all know what happened next - the housing market collapsed and the investments went south. Way south.

Should the city have invested in something as arcane as collateralized debt obligations? Maybe not, but they certainly deserved better counsel from their advisors.

We believe these advisors, and the investment banks who created the CDOs, saw a new market with school districts, municipalities and others. We believe they did a flawed job at explaining the risks and instead focused on these markets as yet-untapped profit centers.

We also believe these cities and school districts need to fight back. Sure, the districts and cities bear some responsibility, but so do the slick, fear-assuaging brokers and investment banks foisting these deals on competitively less-informed purchasers.

My fear is that the Whitefish Bay story isn't an isolated one - just the first one we've heard. I hope the city managers, mayors and council members of these cities protect the interests of their citizenry and hold these people accountable.