Friday, July 1, 2011

Can You Say Ponzi Scheme?

Tim Geithner's response to Senator Jim DeMint's May 26th letter.

I especially like this part...
If investors chose not to purchase a sufficient volume of new Treasury securities, the United States would be required to pay the principal on maturing debt, and not merely the interest, out of available cash. Yet the Treasury would be unable to make these principal payments without the continued confidence of market participants willing to buy new Treasury securities.

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