Do you have more faith an credit in the Euro? The Japanese Yen? The Yuan?

It is obvious that investors and traders around the world all went to cash. In fact, the USD encountered a liquidity problem since it was so desired.

As for the Fed backstopping the junk bond and, more importantly, the CLOs, that is its job. To be the lender of last resort. The Fed's balance sheet means little, contrary to what people think. It is less important then the United States debt since that has to be serviced.

Most of what is going on the Fed's balance sheet will never be resold and will end up written off.

The sad thing is most of the money is going into the traditional stimulus avenues which will have zero impact on the economy.

At what point will people lose confidence in the USD?

Simply put, it will continue until there is a viable alternative.

As all traders now, capital flow is the most important thing.