QE2 didn't work because it wasn't big enough and it wasn't...

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    QE2 didn't work because it wasn't big enough and it wasn't properly targeted. The Fed tried to fill a $2 trillion shortfall in Demand by giving $700 billion to the financial markets, who either put it off shore or into bonds. Of course it failed.

    There will be no meaningful recovery until that Demand gap is closed.
 
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