FDIC wants to tap the Treasury for funds, ie, they do not have enough to cover the banks now 'waiting in the wings' to be liquidated, ie, the banks they wanna liquidate right now are technically in default, but the FDIC can't close 'em, cuz they can't cover the losses!, so they are just whistlin' past the graveyard and doin nuthin, (if you can call leavin them open and prayin for no bouts of the 'summer squirts' nuthin. Meanwhile, the Treasury is 'supposedly also backstopin the Fed, which has indicated in no uncertain terms they need a virtually unlimited blank check, to fire-hose the market with any manner of funds, on a near instantaneous basis. Now lets see, we have banks that are bankrupt, but can't be 'shut-down', for lack of 'insured funding' from the FDIC, we have first-tier banks tapping the Fed / Treasury for 'emergency funding', the Fed is also backing Fannie, the trade deficit is soaring, the savings rate is negative, record consumer borrowing, consumers nest-eggs have and are experiencing mark-downs and losses, if not outright seizures, (and total losses), as are their stock holdings, record inflationary pressures that remain unabated, toatl dependance on imports, of all manner, to fuel our domestic needs of consumption, the entire productive capacity of the US is grossly insuffiecient to meet our imported comsumption, and this relationship has existed for an extended period, with no signs of improvement... and, the US is mired so deep in debt, that along with the components above, the end result, as I see it, is the greatest likelihood for inevitable defaults of the US on our foreign (and domestic) debts While this may take years to unfold and manifest, just as it has taken years and decades in the making, it seems inevitable. And did I mention the war in Iraq, and the escalation of brinksmanship with USSR? And the tensions between Israel and Iran? The only good news here is the temporary lull in Israel /Iran, which for the moment seems to be replaced by the USSR movements, (not a coincidence;, the silencing of one for another, as it seems the aim of both are similar, so, no sense in them taking the stage simultaneously to entertain the audience, they seem happy to 'take turns' doing so). So, what to do, in the face of all this, when it appears that selling is the correct course? Buy, like there was no tomorrow, because the 'only option' to many of these ills, not the least of which are the survival of primary dealers, is for the markets to lift, (as if magically, beyond any rational reasoning). Since it is the least rational outcome, it may in fact be the most likely.