From what I've been reading, the Fed's plan may not work - backwards typist

I'm afraid all it's going to do is get us deeper in debt and we're going to sink like a rock. With the protests and maybe an Iran war in the future, how could he have NOT thought of these things?

I've highlighted some sentences and sorry for doing so many (wear your sunglasses- lol), but they are all relevant. These points come from 2 different articles.

The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market.

In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s realgross domestic product, but reduces the value of the dollar.

In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power, the firm said.

The Federal Reserve's latest stimulus target is intended to rouse the housing market, generate wealth and drive down unemployment, all of which conceivably could happen.

But it will be the assortment of unintended consequences that all the money printing and price-boosting — even outside of the obvious inflation risk — will have that will keep Fed Chairman Ben Bernanke awake at night.

So while investors were busy Thursday and Friday buying up stocks and metals and selling bonds and the U.S. dollar, financial experts were sizing up what "QE Infinity" also might bring to the economy and marketplace

1.  Moral Hazard, Washington Version

Bernanke has time and again exhorted lawmakers in the nation's capital to get serious about fiscal reform and economic growth.

2. Moral Hazard, Wall Street Version

The concept of moral hazard essentially means the rewarding of bad behavior.

But it also extends to the notion that somebody will be there to support you no matter what. The Fed, with its perpetual QE, seemed to appoint itself as the stock market's nanny for years to come

3. Hurting Confidence

 With the latest round of easing, the Fed's balance sheet will soar past $3 trillion and could get to $4 trillion in electronically generated cash before everything is finished.

4. It May Not Work

 All of the economic progress Paulsen cited may be valid, but there's still the reality that $3 trillion in new liquidity — along with more than $800 billion in fiscal stimulus — has generated the worst recovery since the Great Depression.

Is it worth the aforementioned risks if the economy will continue only to creep along, as it usually does after financial crises?

"This is the nuclear option for them. This is a never-ending weapon that is being fired at the middle class," said Fed critic Michael Pento, the founder of Pento Portfolio Strategies and an economist concerned with the effects QE is having on future inflation and on savers who are getting no interest on their deposits.

"If the unemployment rate stays elevated, as I know it will, and inflation eclipses (Bernanke's) 2 percent target, what is his next move? What part of the Fed mandate takes precedence?" he added. "Economic growth comes from more people working and more people becoming productive, and all the Fed can do is destroy our currency's purchasing power."

Even among those watching asset prices grow, doubts remained abundant.

"It's a bold move, but we're skeptical that it will have a significant impact," said David M. Darst, managing director and chief investment strategist at Morgan Stanley Smith Barney. "These (measures) are all useful, but they obviously do not alter the longer-term outlook in a meaningful way."

I have no confidence in them whatsoever - Conservative

Well, that's the old can-do American spirit. Doesn't a little - sliver of you hope it WILL work? Maybe

Definition of insanity-doing same thing over/over again - expecting different result::QE1,QE2, QE3

But we haven't done this before. In this situation. - NM

I wish something would work but when economists - backwards typist

Not to worry backwards typist ::those posters - always post that way when someone does

They don't WANT it to work. It's part of the - destruction of the country.""

Destruction should be Obama's middle name. - It is the only thing he is good at these days.nm