Replies to post #6596 on CHARTS_CCI_SYSTEM

[snootmagruder]

gdl,

First off the debt and the saturation point is no where near it is in the EU as a percentage of GDP.

below is gdp per country and we are as bad as euro with debt, it only seems worse for them because they have a different financial model that is more like a gold standard and harsh austerity instead of wild printing.

http://en.wikipedia.org/wiki/List_of_countries_by_public_debt

Yea, it was difficult to see the banks coming back so strong, with Meridith Whitney and "the zombie banks" and all. It only took the Fed throwing 3 or 4 trillion out there for them to do it.
What was different for this recession was the housing typically leads us out and this time it was unable. As far as speculating what will happen and when is difficult because the QE used this time was something new in the amount and duration and nobody knew what to expect and now that we saw how great it was, can we not expect to see the "unexpected consequences" that go along with government policies?

a couple points

* interest rates trend should be up at least slightly from here out
* QE will taper, then stop, then reverse. The treasuries may be held to maturity, but what about the MBS's