Just maybe something on that US debt .....The individual states...

Just maybe something on that US debt .....

The individual states (not the federal government) have a combined budget deficit for 2012 of 125 billion $US. You don't hear much (yet) in the anglo saxon media (I have the same accent as Faber. So I might be slightly biased) but this dwarfs the European problems. Though I keep ranting about Bernanke, he actually does not have much of a choice. It does not matter whether he calls it quantitative easing or TARP or SFP retirement ... it is all the same. He ensures no politician has to suggest raising taxes.

As for the Europeans .... Mr. Barroso and his mates suggest mixing junk rated borrowers with AAA rated ones, package them and sell them as AAA rated Eurobonds. Didn't we do this already with mortgages ..... and what was the outcome?????

But it is as many people have said it so many times on this thread ... you have to trade the market and not some opinion. So for me 1296 was the death level on the S&P. But once SFP stuff came out on Friday my short position were history as in addition to the POMO money the banks end up with another weekly injection of 25 billion.

As for QE 3 ..... I really cannot see how Mad Benny can get around it. He has no choice.