The Fed's Lower Rates and the Financial Crisis in the Banking Sector

I think the enormity of the budget deficits and the ongoing financial crisis in the banking sector is going to spill over beyond the banks. It's 12 years that debtors have been given this huge subsidy in the form of these artificially low rates. Even if the real rates are going down, if you don't have the money to cover the increasing nominal rates, then it doesn't even matter. But ultimately, falling real interest rates are going to be bearish for the dollar. And that's going to put more upward pressure on prices.