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Larry Kudlow obviously knows more about economics than I do. This is the first hopeful thing I’ve heard about this whole mess.
I don’t think a lot of folks understand this win-win scenario. Let me repeat: The taxpayers own the bonds the Treasury buys; the taxpayers own the cash flows generated by the bonds; the taxpayers own the profits when the bonds are sold; and the taxpayers benefit when the profits and cash flows are used to pay-down government debt.
Actually, for taxpayers, it’s a win-win-win-win.
I don’t know what happens if the values of those assets keeps dropping for a while, but it does seem that they’ll eventually come back up.
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