Seems push is coming to shove. The devastating world-wide pile-up of unsold consumer goods has now spread to commercial goods. Not to be too alarmist, but this is without precedent since the 1930's.
Trade Crunch
And, Mr. Bernake and Co. are back at square one. With the erstwhile help of the US Congress, he and his DC spenders have now blown through about $3 Trillion since the summer of 2007. Yet... the toxic derivatives that are at the root of the systemic risks to the world's financial system remain! The FED and the Congress are trying to drive a stake through the heart of of these toxic monsters, but so far, all for nought.
Uncertainty About Value
What they are doing is throwing into the fan, more of what's been hitting the fan. Creating unprecedented amounts of government debt in the hopes of creating wealth is zombie economics: Prop-up the dead toxic debt and make it seem alive again.
And... zombie economics are being employed to prop-up zombie banks throughout the world. Rememeber, this is not about liquidity. It's about solvency.
Banks Spanked!
