Why did the Fed refuse for months to go forward with QE3 except that they feared its negative consequences? And why have they decided to go forward now except that the economy has become so extremely bad that they feared the consequences of not doing so?
Ben Bernanke might as well have said today that the U.S. economy needs emergency surgery. Yet since neither QE1 nor QE2 worked, where does that leave us?
Keep bleeding the patient until he gets better.