Fed putting all its chips on the table

Commentary: 'QE2' coming Nov. 3

The economy and markets have moved into a situation as unstable as pre-Lehman, although unlike 2008 with a chance for a good outcome, a turn in the Great Recession.

The forces and actors are a mystery to the media and most analysts, confounding many of the actors themselves. Some things are in plain sight: The 10-year T-note has nose-dived to 2.34 percent because of economic fear and anticipating new Fed intervention. Mortgages are falling toward an unthinkable 4 percent.

The economy is sputtering along, but running out of time: The recession has cut federal tax revenue by almost $500 billion annually, and we must ignite the economy to close that part of the deficit gap before the Treasury loses its ability to borrow.