Fed chief Bernanke spooks the markets with comments that Fed's bond-buying could slow later this year. Dow drops, housing and jobless claims rise – this week in the economy.
Traders sold off bonds and stocks after the Fed expressed optimism about the future of the US economy, but Karlsson says he doubts the Fed will decrease its bond purchases anytime soon.
The federal government has been borrowing rapidly to not only finance recent budget deficits but also make financial investments. These investments now total about $1.1 trillion, and the debt supporting Uncle Sam’s investment portfolio accounts for almost 10 percent of the $11.9 trillion in public debt.