"Taken at face value, the
most massive expansion of a major central bank's balance sheet in history, in
which almost $2.5 trillion was added to the U.S. monetary base for the purpose
of artificially lowering long-term interest rates in order to stimulate the
economy, was a failure. Why? Because 10-yr Treasury yields are no lower today
than they were when QE1 was first announced in late November, 2008, and 30-yr
Treasury yields are actually a bit higher, and because real GDP has grown at a
1.6% annualized pace over the same period, making this the weakest recovery on
record. These facts say that the Fed was incapable of bringing down interest
rates, and did absolutely nothing to boost the economy."
