“Frankly I think we are too close to a double dip recession for the powers that be to let a flood of anything occur if they can help it.”

Count me as one of the folks that thought that the government would step up the intervention as the economy continues to get worse. On hearing what has come out of Washington over the last couple of weeks, I’m not so sure anymore. Obama seems so far out of touch with what is going on it is scary. The congress is deadlocked and the republicans have zero incentive to do anything to help the economy as their probability of taking more seats increases as the unemployment rate increases. The FED is looking increasingly impotent.

I now think that there is a chance that TPTB are just going to set by and let this mother burn. Maybe it is for the best. Probably the only way to prevent a Japan at this point is a hard reset and return to fiscal sanity.