I am asking a dumb question since I am not a Yale trained economist. But I thought the problem is not a liquidity issue but an issue of banks hoarding cash? Also how is QE2 good for our economy. Commodities keep going up in anticipation of this QE2. Wont that increase the input costs to make things and the cost of gas and food. wont that make americans spend less since things are to expensive. and since most americans are in debt and all they will just do is continue to pay debts down? And since americans are not seeing wage growth, making life more expensive will just make them spend less, worry more and lead to 1970s stagflation? Anyhow just some questions, sorry for the ignorance.
Just shut up and color and let the experts with Ph.D.'s handle this. Apparently they can bend the laws of economics/physics if we don't ask hard questions and just let them do their monetary magic.
Here's a reasonably good writeup on QE2: http://www.econbrowser.com/archives/2010/10/why_is_the_fed.html
Now oil is probably headed to 100$ http://www.bloomberg.com/news/2010-...falling-as-report-shows-lower-u-s-demand.html So how is this QE2 good for Americans?