[GeronL]

horse crap

It’s simply inflation. It makes things look better for a short time before the real effects kick in.

[DannyTN]

You don't buy that easier money lowers the cost of making new investments and consequently spurs job growth?

Pimco's Gross believes it. I believe it. The Federal Reserve believes it.

High unemployment is worse than inflation. And the Fed can sell the treasuries they bought (so called printing money) on the market to soak up excess money supply, just as easily as they bought them, if inflation becomes to severe.

The inflation that we are seeing now and will see in the next few months is not so much from QE2 but from the oil price shock that is a result of our government's "do nothing" energy policy that we have had for the last 30 years.

[buckalfa]

"It’s simply inflation. It makes things look better for a short time before the real effects kick in."

Very perceptive of you in the macro or long run outcome of QE2. Employment is improving -- the old multiplier effect from the massive printing of money works every time.

The downside is that payback will be a bear (inflation) and an improving employment situation, as artificial as it may be, does enhance the Ascended One's reelection chances.

[taildragger]

And the markets ( i.e. the S & P etc ) will rise as well and have historically done that with inflation if my memory is correct...