"Fed's Fisher: U.S. debt situation at tipping point"

[WhiskeyGirl]

FRANKFURT (Reuters) - The U.S. debt situation is at a "tipping point," Dallas Federal Reserve Bank President Richard Fisher said on Tuesday, and urged the U.S. central bank to refrain from any further stimulus measures.

"If we continue down on the path on which the fiscal authorities put us, we will become insolvent. The question is when," Fisher said in a speech at the University of Frankfurt.

"The Fed has done enough, if not too much, and we should do no more.. In my opinion no further accommodation is necessary after June either by tapering off the bottom of treasuries or by adding another tranche of purchases outright."

Fisher warned there were signs that the speculative style of trading that had helped fuel the financial crisis was beginning to resurface.

"We are seeing speculative activity that may be exacerbating (price rises in ) key commodities such as oil."

read more here  - http://www.chicagotribune.com/business/yourmoney/sns-rt-business-us-fed-fistre72l2tq-20110322,0,5619887.story

What happens when we go over the edge?