Most of the money went to foreign banks instead of our own, the truth is just now coming out:
Sorry but your link says Page not found. :(
http://www.zerohedge.com/article/mike-krieger-explains-why-qe-3-will-merely-keep-lights
When they add cash to the system it has to go somewhere or else there is hyper inflation. This is simply the Fed continuing to hollow out the American economy.
Truth is, all this was done in the hope it would actually work. There’s a contingent of economic theorists out there who thought that bending the yield curve lower by having the Fed purchase longer-dated maturities would goose the economy. They probably still think that way and want QE3, and QE4, if necessary.
This has, unfortunately, put the Fed in possession of a far riskier portfolio of assets than they normally hold, which could come back to bite them (and us, as taxpayers) somewhere down the road.
That, plus the fact that it didn’t work, makes Bernanke one of the sorriest Fed chairmen since Arthur Burns gave us the inflationary 70’s. And if Bernanke’s not careful in how he unwinds the trillion dollars of excess reserves he’s provided the banking system under the two QE’s, he’ll be responsible for an inflation that will make Burns look good by comparison.