The problem of all this debt and fiscal profligacy is clear. Every dollar of debt is a promise to tax that same dollar in the future…and with interest. Estimates indicate that the publically traded debt will rise to $18.5 trillion by 2020.

Let’s talk about sentiment.
Last week was the worst market week since March 2009. Similarly, the three-day decline from Wednesday through Friday was the worst three days since March 2009. The market is now officially in the red for 2010. And the persons we’ve identified as market props (Bernanke, Geithner, etc) are now beginning to come under intense fire for their actions.

It is becoming painfully obvious that the Fed, Treasury, and Administration's disastrous recovery plan hinges on the devaluation of the U.S. dollar. Their specious strategy stems from the belief that a falling currency can re-ignite exports and spark a recovery in manufacturing while putting a floor in U.S. asset prices. But just as the President's initials indicate, the plan stinks of B.O.

A bounce in the financial sector helped stocks regain part of Monday’s losses, as investors grabbed the low prices, driving the intraday session higher. Geithner also had an effect on the stock session as he mentioned during yesterday’s meeting that most of the banks have substantial capital and that the sector is slowly recuperating.