400 billion dollar budget deficits. 60 to 70 billion dollar trade deficits monthly. Banks leveraged 40 to 1 on worthless US mortgage debt. Already BK! The FED thinks they have bamboozeled the American public and the world. NOT!
Further clarification: See other post here "The Great Derivative Unwind". I am interested in the velocity of the unwind of level 3 off ballance sheet debit, SIV's etc. I feel a panic building. Whatever the Fed does tommorrow it is a lose lose situation. Obama with Tax increases will promote selling of bedrock portfolio holdings like JNJ, PFE, MSFT, WMT, INTC, AXP and PG, to save money now on these tired growth stocks.
While the US econ certainly looks like its in dire straits, I'm just not so sure if it will become insolvent as the direct result of this economic fiasco. Maybe many other things thats going down but maybe not this fiasco.
Yes, thats right, they were halfway thru their bankroll as of several months ago. Because real estate is essentially currency here in the USA, what I see happenning is Resolution Trust Company part II. Hillary Clinton will be in charge of it (given her intimate knowledge of the institution) after most probably ripping it off in the 1990's.
A bank/broker analyst several months ago, can't remember who. He just looked at the Fed's capitalization and made a projection based on the current rate of bailout cash burn. Yes, the government can print money, but it will not go unnoticed in currency markets.