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A comment on U.S. Weighs Selling 50- and 100-Year Bonds After Yields Plummet. Parent comment

Re:U.S. Weighs Selling 50- and 100-Year Bonds After Yields P... by pishpash on Saturday August 17, 2019 @06:18PM (#20726780)
Tax breaks are just borrowing using the good credit of the US on behalf of the private sector. Because the Treasury can borrow so cheaply is it bad that it is the one borrowing?
[ Parent | on HN ]
Re:U.S. Weighs Selling 50- and 100-Year Bonds After Yields P... by jacques_chester on Saturday August 17, 2019 @08:07PM (#20727268)
Yes, because different borrowers receive different rates than would otherwise occur. That distorts the discovery and prioritisation of opportunities in the private sector.

In particular, it elevates rent seeking over productive risk taking.

[ Parent | on HN ]