Markets in everything, until they are cancelled

Is this good or bad for the macroeconomy?:

In Los Angeles County, cities are buying federal stimulus funds from
each other at deep discounts, turning what was supposed to be a
targeted infusion of cash into a huge auction.

In two cases $500,000 in stimulus funding was selling in the range of $310K to $325K.  (What does that tell us?)  But wait, the Los Angeles County MTA has now cancelled these swaps.

I thank Jerry Brito and Todd Myers for the pointer.


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