Topic: “In the market for U.S. Treasuries, options premiums have fallen back to new lows and there is no sign of fear evident among complacent traders as they sit around and wait for the Fed’s December meeting and watch how the Republican tax plan unfolds in Washington. Once the business-friendly template was released, the lobbyists and dissenting legislators went after it like starving hyenas, especially the housing industry after it saw the deductibility of mortgage interest cut in half at the high end of that market. It seems that the only thing all parties agree on is that the bill could be delayed well into 2018, and it will not resemble the package offered last week. That leaves bond traders uncertain about the long-term supply-side impact from the tax cuts, and unwilling to bet this early on its success or failure.”
Review the news clip given above then answer the following questions: 1. How will new tax policy provides productive investment opportunities to businesses and the household sectors? 2. Do you think there is a positive link between financial development and economic growth? Give suitable examples 3. “Not all government interventions in the financial system are beneficial” Do you agree with this statement? If yes, why? If no, why not?