Anvil, meet hammer

The Fed will soon lower the FFR to 25bps.

The implication of this is that the reserves they currently hold for DI's will soon pay almost 0% interest.

This is the anvil.

The hammer will be Obama's risk-free returns due to his "stimulus" plan: soon, money will flow again to various sectors: materials, energy, civil EPC's, and perhaps defense contractors if our dual wars get more sporty.

The question is, will more money flow to these "chosen" industries, or will the credit markets remain so disfunctional that only outcome is a dollar decline as a result of the credit risk imposed upon the treasury/fed balance sheets'. Perhaps we'll get some horrible bastard that has stagflation as a mother and deflation as a father, with credit spreads crippling the credit markets that don't have explicit government backing, and each successive new instance of government backing only further over-reaching the NPV of that issue of debt known as the USD.