Why many fear more quantitative easing won't fix economy

The absurdity that the economy can be fixed through infinite rounds of indirect and direct stimulus is only superceded by the suggestion that it will create jobs in an economy with declining private domestic investment.

The treasury auction and TIC data illustrates subtle changes in how our debts are being financed. Direct anonymous purchases have increased as the Chinese have slowly withdrawn their bids. Quantitative easing part two (QE2) simply allows more direct purchases in plain sight.

The Federal Reserve is likely to announce a plan to pump more money into the economy next week. But some economists worry that the move won't work.

The Fed is expected to announce hundreds of billions of new asset purchases, particularly long-term Treasuries, in an attempt to jump start the struggling U.S. economy.

Source: finance.yahoo.com