>>Only thing that will rescue the States YUGE unfunded pension liability issues.>>
They put themselves in that position so I think they will eat shit on most of it. At least they should however that is the dilemma. The states were horrible custodians to it's own customers. They just shrug and say "sorry'
Mnuchin has a massive job to separate this massive LEVERAGE-based bubble while hurting the least amount of people who deserve what they paid into.
His job is NOT enviable… The leverage created by the FRB's repo-process was thrown at what….Equity's and whatever the hell the primary dealers wanted to use it for. There were ZERO restrictions on what was done with the cash for sacks of shit (bad assets).
This leverage permeated every available avenue and it had to.
All you need to do is see how the ETF, ETN market grew like weeds just prior to '08. Let's create another debt-based vehicle to herd the masses into. Look at the prospectus of any of these ETF's and you will find them stuffed full of T-notes. Your 'software' ETF is most likely 70% short-to-medium term bonds with very little to do with the sector it's supposedly tracking.
Go look if you dare.