Are You Ready? The Government Doesn't Give A Damn

Drill that into your head folks: The government doesn't get it, exactly as they didn't get it in early 2008.

There is no way to avoid what's coming. We have added roughly $4.5 trillion in debt to the Federal balance sheet trying to paper it over and have failed. Even the "good" banks like JP Morgan and Goldman are failing to make progress. The poorer ones such as Citibank, Morgan Stanley and Bank of America are seeing their market prices collapse. The XLF, the composite of the large banks, is back to where it was in the summer of 2009. Should it break below these levels it is likely going for the spring 2009 lows.

All the fraudulent accounting games, shifting Granny's earnings on her CDs to the banks through zero-interest rates and money printing have been used up as policy tools. There are few if any weapons left in the arsenal to combat what is coming.

This is where we are, and where we're going.