McKinsey recently produced a report that analyzed the current debt markets and projected financing needs over the medium term. This is a definitive effort that provides a basis for understanding our financial future. http://tinyurl.com/yc5druv
The second article by Gordon Long analyzes the trends in maturity of public and private debt. It provides a clear picture of the crunch in debt refinance that should occur in 2012. http://www.minyanville.com/businessmarkets/articles/economy-interest-rates-swaps-us-banking/4/5/2010/id/27613?page=2
The Federal Reserve and Treasury are the backstop for these markets. They are providing the stability for private and public bond sales which, in turn support the stock market. Barring an accident, stability could continue through most of 2012. It would be a mistake to assume that money creation cannot be effective in the medium term.