Instead, step back and look at the big picture, which is pretty simple: as a stylized fact, the bond market is dominated on both sides by the official sector. Private participants might sit in the middle as market-makers, or try to borrow money here or there, but overall what you’re looking at, when you look at the bond market, is government issuing debt and governments buying it.
Government issuing debt to itself, hmmm... Isn't that one of the things bankers are supposed to know? Felix seemed genuinely surprised that our federal government is nearly bankrupt. He must have missed the memo on secular stagnation.
No comments:
Post a Comment