QE2 is not about stocks, it is about the inability for the fed gov to sell enough T bills to cover their obligations and entitlements. Bernanke is trying to stave off a popular revolt like Greece. China and the world may make that nightmare happen when they can no longer afford to buy T bills as the US dollar drops in value due to QE. In the meantime everyone on Main Street will get it in the aXX from high inflation.
What will happen now is that foreigners seeking to redeem existing T-Bills as they come to term will find that the only buyer is the Fed, who will simply print dollars to pay them off.
Of course, those dollars will buy less and less. In effect, the US is forcing its bond holders to take a huge haircut, while promoting exports and domestic production by devaluing its currency.
Nixon effectively shafted US debt holders when he took the US off the gold standard, so I don't know why anyone is surprised now.
Unlike other countries, the US _can_ produce just about anything it imports, whether commodities like oil or manufactured goods-- the difficuilty is the lag time between rising import prices and ramped up domestic production.