Not sure I agree that the root of the problem is the primary dealer system. The core of the problem is that there does not exist -- even on a global basis -- capacity to buy $3T of Treasurys annually. We can't legitimately market them. So we'll blip money into existence and buy them off the banks (our largest banks are the primary dealers, for those who may not know).
Excellent find.
Not sure I agree that the root of the problem is the primary dealer system. The core of the problem is that there does not exist -- even on a global basis -- capacity to buy $3T of Treasurys annually. We can't legitimately market them. So we'll blip money into existence and buy them off the banks (our largest banks are the primary dealers, for those who may not know).