This recession is very different from any since the Depression. Normal events just aren't happening, ones like a rebound in housing prices, shorter unemployment periods, interest rates bouncing back. The severity of the economic slowdown continues to grind on, and investors who thought along the lines of a "normal" recovery have been disappointed so far as there's nothing normal happening.

The Fed is walking on a tightrope. On the one hand it wants to keep interest rates low to jump-start the economy. On the other side are the bond investors who want a higher rate of return on their investment. In recent weeks investors have driven the yield on the 10-year note to 2.72% from 2.07% in December.

The Fed is facing high government spending this year from the stimulus packages, which it expects to hit 8.3% of GDP. Such massive issuance of debt could spook Treasury investors from buying bonds and notes. To maintain equilibrium, the Fed has said that it will purchase Treasury bonds to keep rates low. In so doing however, the Fed has to print money to buy the bonds, thereby creating more uncertainty on the part of investors.