Sell!

But what is there then to buy? And when the T-bonds go south, will not the dollar soon follow?

US Treasury bonds are now taking a big hit from the assumed bail out (Congress still needs to rubber stamp it) of Freddie and Fannie:

``The market is starting to look at the senior debt of the GSEs as approaching full-faith-and-credit obligations of the U.S. government,'' said Ken Hackel, managing director of fixed-income strategy at RBS Greenwich Capital in Greenwich, Connecticut. ``That is a large book of debt to effectively transfer to the U.S. balance sheet and increase the government's liability.''

But don't worry, be happy, because Feckless Leader says everything is OK.
(h/t naked capitalism)