This week former Treasury Secretary Larry Summers defended the QE strategy. Quantitative easing was a way for the Federal Reserve to “create” money by purchasing its own assets and expanding its balance sheet.
The first QE was needed. The rest, not so much.
All the bubbles that every one is talking about in various markets are there courtesy of the Federal Reserve. Fed policy, combined with government policy, has given more power to big banks, crowded out small business and job growth, and created a liquidity trap in the marketplace.
The sooner we get off the QE train and raise interest rates a little, the sooner the economy can get back to normal.