$10.2 Trillion was a Drop in the Bucket - Latest Crisis Tally
It's only been a month since the last tally brought us to $10.2 Trillion, but my how the trillions fly when you dive into quantitative easing and pick up the slack for disappearing interest abroad in GSE debt and mortgage-backed securities.
Along with this tally I would like to issue a warning of sorts. We are in way over our heads with the implied debts of these commitments and potential outlays. The scale of their response makes it as clear as day that the scale of the underlying problems remains many times greater than the public has been informed. Despite the calm reassurances from our President on the tube last night, Washington is very much in panic mode. We're in this for as much as $13 trillion and still we see no change, and meanwhile the world is calling for the end of the USD's reign as reserve currency. These are precarious times indeed, and I urge Fools to consider the potential speed with which the present rally could disappear when the next macroeconomic event crosses the wires.
Please read my tally article here, and as always please share your thoughts and concerns here and recommend the article if you like it.
Also, please see my comments to this article.
I'm drafting a piece today on the international dollar crisis now unfolding, and will post that here as well.
Thanks for reading, and for sharing your thoughts on these critical matters. I feel we are on the verge of some major disruption to the financial framework, and I feel a sense of foreboding in my gut. Please be careful everyone and try not to fall prey to the natural excitement of a quick 1,000-point rally. The bottom is not yet in.