RichieTenenbaum wrote:1. Right, mainly. Ridiculous spending in other areas hasn't helped.
Most of the budget deficit was caused by us buying huge shares in the banks, right?
And the share prices of the bits we own are rising much slower then our interest repayments, right?
So why don't we start the job now of selling it all back to the private sector. I'm sure we'd find buyers.
The quicker we do this the better, surely, as we're losing money every day we hold onto those shares.
2. Not really. If timed correctly then we would make a profit, however...
3. Supply and demand - as the Government sells then the price may decrease to a less good position
4. No. see 3.
The reasoning behind why the government chooses to sell would also have a wider impact, might be good, might be bad.