The federal government is not a limited purpose organization; it has many objectives. But if it is going to take on the responsibility of intervening in a highly complex market of investment and actuarial exposures, it is a shame that it cannot do so with its eyes open to the financial risks and with the ability to structure its balance sheet accordingly. While it may be hard for some to imagine an instrumentality of the federal government shorting the American stock market, if the U.S. government is going to take on the responsibilities of an insurance company, doing so with one arm tied...

The federal government is not a limited purpose organization; it has many objectives. But if it is going to take on the responsibility of intervening in a highly complex market of investment and actuarial exposures, it is a shame that it cannot do so with its eyes open to the financial risks and with the ability to structure its balance sheet accordingly. While it may be hard for some to imagine an instrumentality of the federal government shorting the American stock market, if the U.S. government is going to take on the responsibilities of an insurance company, doing so with one arm tied behind its back is bound to be expensive for taxpayers, pension plans, and retirees.