Kansas City Fed Chief, Senator Bayh

Kansas City Federal Reserve Bank President Thomas Hoenig is now the first Fed President to point out the obvious - that U.S. is on the brink of fiscal disaster. Regional Fed Presidents are loathe to speak so plainly - I wonder what the impetus for this confession truly is.

I don't know whether to applaud - or run for the hills. If this doesn't freak you right out of your shoes you are not paying attention.

Think about it. Senator Evan Bayh says the U.S. political system is irretrievable broken and in need of an electoral "shock" on the same day that a sitting Fed President says we are heading inexorably towards a financial disaster...

Let's sum it up: our leaders are now telling us that our political and fiscal constructs are on the brink of going Chernobyl. This is why I am so concerned that something really, really bad could happen at any time from 5 minutes from now out till the later part of this decade. If you are a family man (woman) with responsibilities - this would be a good time to avail yourself of some serious contingency planning.

How could it hurt?

These are true leaders. Bayh and Hoenig had the courage to warn the American people, and I a commend them.


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