Hopefully this subject line will not get this post deleted, but: The Fed has interest rates at 0% - .25%; still paying reserve interest to banks; has become the effective counterparty to derivatives of the big banks; has devised programs such as CP, TALF, TARP, Cash for Clunkers, MBS, and others; Has stated they wont let a big institution fail again; Quantitative Easing; increase the money supply (M3) by crazy amounts. yet: CPI year over year is still negative; Credit continues to contract at the household sector; and M3 started declining too; Unemployment seems poised to hit 10% officially (17% if taking in all other underemployed); and: Still no apparent economic catalyst in sight; the consumer still appears tapped out; the government continues to spend, at the fed level, like it is 2004 thus: - Is the Fed, and the Government as a whole, officially impotent after all of those measures? - Will people wake up and realize that the Gov't can't "bail us out"? - Will deflation delever the decades of credit growth, regardless of anything else? Anyone else seeing the macro picture here?