Why do financial firms usually get the cream from investment? I can expand on the liquidity problems of central government. When central government makes a big bet on part of the economy there is a program that has to move through an economy not ready for it. So financial firms parcel out the government debt into smaller liquid funds, they hedge the government. So, Congress creates the illiquidity, and financial firms get a big fee for liquifying the problem.
The general case in which Treasury is borrowing on a term schedule that does not map the due schedule for Congressional goods. The bond traders make a living by mapping Congressional plans with Treasury borrowings.
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