The thing that really concerned me last week was the way how heli Ben is pumping the markets recently. He almost acts like a pinkie CEO. Desperate stuff, printing money he cannot realistically pay off. Like a pinkie CEO starting death spiral financing just to keep this whole thing alive for a few more months. The Fed looks like running out of options.
Switching debt from the market to the government does not mean paying off debt. Debt has simply not been paid off yet, but only transferred. Inflation and future taxes will make us pay. However, more and more people believe again they can continue now as usual after the government has injected "some" money. However, only a tiny amount of the toxic waste out there has been covered by government action yet and a lot of governments all over the world are already running out of steam in terms of injecting money. After the housing and banking system got poisened, now the national budgets get chronically poisened as well. We risk to end up in economic and social depression.
My personal sentiment has darkened signficantly the last couple of days. I get more and more the impression that the government paints a much more rosier picture than the data indicate.
