The Dollar

This is a great post on Funding the Deficit from Across the Curve, with some great comments.

The author opines:

I think that the Treasury will be hard pressed to raise that amount of money without some novel financing ideas.

In addition to a new 7 year note, and monthly 30 year bonds, one suggestion:

I think that the Treasury should take advantage of the current rate structure and should issue a chunk of 50 year bonds. Issuing these bonds at any rate below 4 percent seems like a steal to me. These are unusual times and Treasury should consider this unusual and unique funding approach.

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