Bernanke's QE2 Needs More Than $1T To Succeed

After Bernanke's commnets were published today, the Globe and Mail hd this to say:

"Unfortunately, we're still no closer to knowing exactly what the so-called QE2 program might involve, in particular what amount of Treasury securities the Fed could end up buying," said Paul Ashworth, senior U.S. economist at Capital Economics in Toronto.


"... Our feeling is still that, given the strong resistance to further QE from some hawkish Fed officials, the program that eventually emerges, most probably at the next FOMC meeting in early November, will be too timid to have any real impact. At this stage, $500-billion or even $1-trillion is just not going to do it. Yes, it might lower long rates a little and juice stock markets a bit more. With mortage rates and corporate bond yields already close to record lows, however, we doubt that would have any meaningful impact on the wider economy. "