This today from a private investment newsletter I subscribe to: .....the Fed gave us another sneak peak at its balance sheet this morning. Can you say, $2,000,000,000,000.00? Ben Bernankes balance sheet expanded to a record $2 trillion this week -- $2.058 trillion, if those billions even matter any more. Thats more than twice its size at this time last year. The Feds loan portfolio is so bloated, we hardly know where to begin: Average DAILY bank borrowing from the Fed exceeded $359 billion last week the Feds Commercial Paper Funding Facility has nearly doubled, and now holds $243 billion in no one else will buy it cooperate debt primary dealers and brokers are running a $71 billion tab AIG still owes $81 billion it just keeps going and going. Over a third of the balance sheet is made up of some sort of bank loan or toxic asset. Whos paying for it? The U.S. Treasury has set up a supplementary funding account with the Fed, which is fueled by T-bill sales. That fund now exceeds $558 billion. "I would not be surprised said Dallas Fed President Richard Fisher, to see [the Feds balance sheet] aggregate to $3 trillion...by the time we get to the new year." That would be by January or another trillion bucks in the next two months.