Re: The Repo Market Time Bomb

[Doug Henwood <dhenwood@xxxxxxxxx>]

stan jonas wrote:

>As an aside it was the "invention' of repo in the early 1960's that made the
>U.S.fixed income markets the leading ones in the world.... a country's
>march to
>financical efficiency can be measured by the depth of its repo marketplace..

Since you are such an expert, I'd be deeply grateful if you could explain
the general benefits of the depth and efficiency of U.S. fixed income
markets. With the exception of the last 3 years, long-term U.S.
macroeconomic performance has lagged that of other OECD countries - and
with higher poverty rates and a more polarized income distribution -
countries with thinner, less efficient debt markets. No doubt there are
great benefits to rentiers and traders, but beyond that?




Doug

--

Doug Henwood
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