Thomas Levenson "Money for Nothing" (Random House, 2020)
New Books in Economics
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Is There a Secondary Market for Government Debt?
The key to a lot of this is the fact that there was a secondary market for this debt. One of the problems with buying a piece, holding a piece of government debt directly is not only the government couldn't redeem it, you couldn't sell it. So one of the great virtues of this of this whole privatization transaction was to give people both the possibility of sharing in any kind of capital gains that might come if the stock went up. But also just the fact that they could get their money out if they needed to.
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