Perhaps, but I believe their strategy is to prop the markets however long it takes to convince Joe Sixpack it is safe to get back in the water, and so when they do start unwinding, the markets will trade (they hope) relatively sideways, with Fed money being gradually replaced by Joe Sixpack's. What they don't count on is another shoe to drop, e.g. commercial real estate loan defaults, Alt A and Jumbo mortgage defaults, and a continued AWOL jobless consumer. Their problem is the statutory debt ceiling, and despite Bernanke's lies, there is clear proof that the Fed is in collusion with the Treasury to monetize the debt. Through third parties, e.g. GS/JPM, the Fed buys the treasury notes ~ one to three days after the auction, and therefore the debt is effectively transferred to the Fed balance sheet (i.e. monetizing). Under Obama's continued trillion dollar annual deficits, pretty soon, so much of the debt will be on the Fed balance sheet that it will have no latitude for any other "facilities" without "printing" more and more money. The last treasury auction, the Fed ended up with ~ 45% of the offering, since they could only find enough stupid foreigners to buy 55%. Why do you think there is all the talk in world financial circles for finding another reserve currency? It is the direct result of the irresponsible and uncontrolled spending by our socialist leaning Government. The net result of this attempted slight of hand (which will ultmately fail, IMHO) will be Carter era stagflation, but all hope is not lost. "It took a Carter to give us a Reagan." - (not my quote, but borrowed).
