Did The Fed's QEternity Just Kill A Fiscal Stimulus Deal?

US equity and bond markets have reversed their initial exuberance at The Fed's monetary policy lunacy as investors realize that soaring stocks will dramatically reduce the urgency from The Senate to cut a deal, which once again leaves The Fed shouldering the bulk of the burden (and given that, the fiscal stimulus may not come at all).

And it's gone...

And bonds erased their gains...

Stimulus Bill Draft Gives Treasury $425 Billion to Fund Fed Aid

However, gold is not giving anything back...

Just like TARP, to get this bailout vote through, markets are going to need to crash to force Washington's hand.

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