” Will someone transklate this for us (ahem) normal people. “
I think that what the author might be trying to say (or carefully *not say*) is something like -
Regardless of the publicly stated rationale, the real-world effect of the QE programs has been to provide artificial demand to prop up bond prices, and with the end of QE2, that artificial prop disappears, and bond values will catastrophically return to their ‘natural’ level....
Or, in layman’s terms that I can readily understand — “We’re soooooo SKROOOOD!!!”
The longer we try to prop them up, the worse the eventual damage. Ya can't cure melanoma with Band Aids.
-- Notary Sojac, sayin' this since 2008