20.07.2015 - Skepticism About A U.S. Sovereign Wealth Fund
The U.S. government right now can borrow very cheaply, which has spurred many to argue the U.S. should create a sovereign wealth fund (SWF). This would basically be a fund that the government invests with to try and make a profit. I think the biggest problem with this idea is it assumes into existence an efficient new body for managing a huge portfolio, and creating new effective institutions like this is very difficult. Many SWF proponents point to other governments that have them and run them successfully, but they miss examples where governments manage asset ownership poorly. In a new piece at Bloomberg View, Peter Orszag summarizes a new book on poor government commercial asset management thusly:..............................................Full Article: Source
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