Originally Posted by Garcia Bronco
No and no and no and no.
You don't get it. The math and manipulation is beyond you. That's why they're making plans to taper it off. The Bond market will no crash. Sure current investors will feel the pinch, but with raised rates, getting into the bond market will be good. Banks have been storing up cash and assets as well. The US is actually in good shape except for our debt, which is relative because just about everybody else is in debt too.
The outlook is good.
You overlook the fact that the too big to fails are way over-leveraged. Their reserves are tiny compared with their exposure to credit default swaps and other toxic debt. On an order of 30 to 1 or even worse.
This is not good. This is why the QE 3 was put in place in the first place -- and why if the Fed backs off the too bigs will be in big trouble.