This so called QE2 will not diliver and this is why. Even though it will drive down yields, what eveyone has missed out on is that it will also drive up bond prices. And because we are living in a time where speculation is rampant this will cause even more money to be piled into the bond markets and sucking everything dry.
The only way to fix this is to rise interest rates and remove the banks appittie to borrow at .25% and buying gov bonds paying 10 times that at 2.5%.
