by Dave Gonigam
Daily Reckoning
It’s a headline that inspires false hopes about politicians finally getting their comeuppance.
“Wall Street’s Pile of Unwanted Treasuries Exposes Market Cracks,” Bloomberg reported a week ago.
It seems the U.S. Treasury’s “primary dealers” are saddled with more Treasury debt now than at any time since October 2013. The primary dealers are the 22 big banks and trading firms required to show up at Treasury auctions in exchange for a host of special privileges with the government and the Federal Reserve.