BUYER BEWARE: Mark Carney Pitches a Canada “Wealth” Fund - Funded With Government Debt - What Could Possibly Go Wrong? - energynow.ca
BUYER BEWARE: Mark Carney Pitches a Canada “Wealth” Fund - Funded With Government Debt - What Could Possibly Go Wrong? - energynow.ca
Source: energynow.ca
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DW NOTE
Carney wants Canada to borrow from bondholders at 3–4%, hand the cash to a government-controlled fund, and hope it earns more than the interest. That worked brilliantly for CalPERS, Ontario Teachers, and every other state fund that confused leverage with alpha. When the fund underperforms — and it will — taxpayers eat the coupon payments while ministers blame market conditions.