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The Feds know they cannot afford to absorb all the toxic financial waste, however, they have time on their side because they can print money.

They hope that over time, they can slowly off load this junk.

Mark my words, they are letting the air out of the balloon slowly to avoid a market crash - left on its own, we would have seen the worst market crash in US history if genius Bernanke had not interfered.

Instead we will see an economic slowdown until the air is out of the balloon. This could not have come at a worst time, and I am not just talking about an election year. The US has growing fixed entitlement programs such as Soc Sec, Medicare and Medicaid. These programs consume most of the governments tax revenues.

These entitlements are growing fast due to the the demographic changes from the aging and retiring baby boomers. All of this entitlement growth comes on a shrinking demographic tax base. This mathematically equates to higher taxes and slower growth.

We are experiencing a market crisis at the same time we are experiencing a period of shifts in our tax base. The government is throwing a lot of money at the financial problems (I understand why, to avoid a global stock market crash - I get it).

However, we do not have the tax base to cover this.

Before we could rely on increasing tax revenues from "baby boomers" now we have to bear the cost of government bailouts when the baby boomers are now retiring and are entitled to Soc Sec Medicare/Medicaid. So, what do I think of the government moves so far? They choose to tackle the worst of two evils, which is good.

However, we still have to contend with another devil. We have room to breathe now, but soon we still must pay the piper.