America’s sovereign wealth fund

Economist Ed Yardeni points out the the U.S. will now have the world’s largest sovereign wealth fund.

Ironically, the world’s largest state-sponsored sovereign wealth fund will be TARP if and when it is fully funded at $700 billion. And, of course, the US government now owns Fannie, Freddie, and AIG. Unlike other SWFs, TARP is 100% debt financed, so it is really the world’s largest leveraged blind pool.