Now this is going to be interesting - if it wasn't our money

From CNBC:

Fed Virtually Funding the Entire US Deficit: Lindsey
The latest round of extraordinary Federal Reserve stimulus is risky and leaves little room to maneuver should another crisis hit, economist Lawrence Lindsey told CNBC�s �Squawk Box� on Wednesday.

Lindsey said that with the Fed purchasing at least $40 billion a month in mortgage debt through QE3, �they are buying the entire deficit.�

�I have no problem doing extraordinary things in extraordinary times,� said Lindsey, a former White House economic advisor under former president George W. Bush who now runs his own consulting firm.

Lindsay said he agreed with the Fed�s first two rounds of quantitative easing. Now, with the economy now growing closer to its trend rate, �doing something that�s really out of the ordinary is risking things.�

He added, �If this becomes the new ordinary, it�s hard to imagine the Fed�s maneuvering room� should another crisis hit.

I disagree with Lindsay on the necessity of the first two quantitative easings -- should never have done those. It would have been painful for some banksters but the overall banking and investment community would have emerged a lot leaner and smarter and more financially stable. Lindsey was a G.W.B. financial adviser and G.W. had his own share of spending problems. That being said, if the slightest merest hint of a bubble comes along now, we are in for a shitstorm of epic proportions. Bubbles like the second dip of the double-dip recession, even something as trivial as the education bubble could tip us over the edge. We never seem to see them coming so how can we really know what the next one will be...