….. the fact that the Fed has had to pump nearly $200 billion in cash into the banking system in just one month, and promise to add another $480 billion or more in outright purchases of Treasury securities over the next 6 months is mind boggling. Why else would they do this? The US economy is trundling along at a slow but steady growth rate. Why the urgency? Because the banking system, and the Primary Dealer system in particular, are on the verge of collapse, groaning under the weight of the unprecedented, and ever growing mountain of US Treasury securities, they are being forced to absorb and hold.