Torqputty - YES! QE2 will accomplish all of the wonderful things you named and that will be the result. "Quantitative easing" pushes interest rates down, produces bubbles & inflation plus devalues the dollar. When you create money out of nothing and inject it in massive doses into the banks to be invested in assets you create an asset bubble. ALL bubbles burst.
As the dollar is devalued it takes more of them to buy foreign goods. Foreign goods are about all you can buy. When is the last time you bought anything "made in the USA". Have you noticed the increase in the number of dollars it takes to buy commodities and precious metals. Now we will pump up the stock market to about 1600 again simply because the banks have the dollars to do so. But wait, ALL bubbles burst. Yes, we will see 600 again.
It took the Second World War to end the Great depression. What will it take to end the Great Recession? One thing is for sure, monetary policy couldn't do it then and cannot do it now.
QE1 was 1.7 trillion dollars and it failed miserably so Ben decided to do it again in QE2 with 600 billion dollars.
Why is the Fed buying treasuries? It is because no one else will. The Fed is the buyer of last resort. The problem that the Fed has no money so they just create it out of thin air.
You cannot end a recession with monitary policy. The only thing Ben and Tim will accomplish is prolong the agony, increase the pain and finally leave us much worse off.
Ben bernanke is an educated fool. He is an arrogant half wit who believes his own press. No one can name ONE THING he has got right since taking his position as head of the FED. NOT ONE prediction has proven correct. NOT ONE action has proven effective. He has NOT ONCE correctly evaluated the situation. His record as head of the Fed is absolutely perfect. It is one of perfect failure.
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