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Strategies & Market Trends : Steve's Channelling Thread

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To: Zeev Hed who wrote (9901)1/7/2001 11:36:58 AM
From: Zakrosian  Read Replies (1) of 30051
 
Zeev - Did you make some comments similar to those in this article as long as a year or so ago?

washingtonpost.com

Specifically, But the problems that arise from completely wiping out the debt could actually outweigh the benefits.

For starters, let's consider the buying back of all those bonds and thus the disappearance of the Treasury market, which has become an integral part of financial markets and monetary policy. It is not just bond traders who would feel the loss. Without Treasury bonds, investors would lose the closest thing to a risk-free asset and the Federal Reserve would be left without its primary tool for affecting interest rates.
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