The US Government is broke

1)   Greece is bankrupt. It has been for years. The market has finally stopped being moronic and figure out the obvious (so much for the “efficient” hypothesis).

2)   Greece WILL default. This WILL crush German and French banks.

3)   The EU in its current form (as well as the Euro) are DONE.

4)   The US banking system is similarly fragile and on the verge of collapse.

5)   The US economy is in a DE-pression and rolling over in a big way AGAIN. All the economic data is being massaged to look better than it is. Look around you, does the economy look OK to you?

6)   The US Government is broke. Obama’s jobs plans is absurd. Where’s the money going to come from?

7)   Bank of America (as well as the other TBTFs) is insolvent. The only reason they’re still in business is rampant fraud, lies, and theft. What’s happening in Greece is coming to them soon.

8)   The Federal Reserve has lost control of the markets. QE 3, IF it comes, will accomplish nothing. Bernanke will be stepping down within 18 months and possibly facing legal battles.

Everything above, except number 8, is likely. I take exception to the “IF” in the last item. It will accomplish nothing, but it will happen. Without QE3 (either overt or covert), the US government cannot fund its needs. Markets will not fund $1.5 Trillion deficits so the Fed will directly or indirectly purchase government securities so that Social Security and other government payments don’t stop.