On June 30 The Wall Street Journal published a chart titled "QE2: A Quantitative Assessment." It commented on QE2 and showed how various economic and market metrics fared over the course of the program.
The question of QE2's impact is an important one, for a variety of reasons. This impact is especially important as I believe that QE3 or something very similar will be done in the future.
How should the impact(s) of QE2 be assessed?
I believe that such an assessment should be broader than what is commonly seen.
Among areas that should be assessed are the risks taken by performing QE2. I have written extensively about various QE2 risks in previous posts.
Another issue that deserves greater recognition is that pertaining to the risks accompanying the "exit" from QE2. Until such an exit is orchestrated, I don't believe that QE2 can begin to be fully assessed. I wrote about the risks of exit from QE2 in the December 17 post titled "Quantitative Easing Exit Issues."
Overall, I believe that QE2 has had a complex impact on the economy and markets.
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1339.22 as this post is written