Washed Away on the QE2
Imagine that your water pipes have holes, and that, not wanting to pay to repair them, you tell the plumber to turn up the pressure instead. Replace pipes with banks, and you have the logic of the US Federal Reserve's policy of quantitative easing.
NEW YORK – Imagine that you get in the shower, turn on the water, and nothing comes out. You call a plumber, who tells you that there are holes in the pipes, and that it will cost you $1,000 to repair it. You tell him to turn up the water pressure instead.