I officially have no idea what QE2 is even supposed to be doing at this point.
Bill Gross is getting ridiculed for thinking that yields on Treasury bonds will rise when QE2 ends, even though the purpose of QE2 is to keep Treasury bond yields low.
It seems that the average economic reporter believes:
1) the end of QE2 will not cause a rise in Treasury yields
while simultaneously believing
2) QE2 is necessary to keep yields low.
Surely I must be missing something. The only way it makes sense is if the real purpose is something more like this.