How can you promise to lend money you don't have? That's mostly the question I'd ask the US government.
Do you print? Basically assign new bonds with nothing backing it/no collateral?
Do you ROB some entities that has money to pay those that don't? How? Taxes? More GSE thuggeries? Or by force liquidate a few mega hedgefunds by accusing them of something?
Anyway, I feel the two news today just don't have bones:
RTC: Yes, it's interesting, but who's got money?
No short-selling: This will be self destruct button. No hedge, no demand for your stock. Also technically you cannot count on any price discovery anymore. The volatility will be epic, and they will happen for NO reason at all.
This is not a rocket science and I am sure someone with a couple of braincells would find those questions reasonable to ask but will find any "solution" unreasonable.
The right enemy
5 years ago