This is a well written must read article:

As the Fed buys assets in the market, the Fed drives prices higher; in case of debt securities, the yields will be driven lower. Superficially, this will be perceived as good news as the cost of borrowing is kept low for those who are affected by the purchase programs. For example, mortgage rates may remain low. Note, however, mortgage rates are low for those who qualify for a loan, not for everyone. While many are euphoric that the Fed keeps the cost of borrowing low, there are potentially severe unintended consequences. Specifically, through its direct purchases of securities, asset prices are artificially high. Why would private sector participants buy these securities? The Fed risks becoming the backstop of all economic activity with its action. While the Fed has the printing press, it does not have unlimited manpower: there may already be more acronyms in the Fed’s toolbox than staff members. The Fed cannot replace 8,000 banks, but is on its way to doing so. Think of the credit markets: by providing companies like GE direct access to the Fed for its commercial paper needs, GE is kept afloat, but the credit markets remain seized up. The Fed urgently needs to rework its programs to encourage private sector participation, rather than substituting private sector activity.

Importantly, foreign investors are also told their money is not welcome. Foreigners in recent years have been buying the bulk of U.S. Treasury and agency debt. But if these prices are driven artificially high (the yields artificially low), at the very least on the margin – foreign buyers may abstain. Further, Asian investors in particular need their money at home as a domestic stimulus within China is far more efficient than to try to prop up the U.S. economy with debt purchases. The Fed may be able to keep the yield on securities low, but it does so at the expense of the dollar.

My Comment; Central planning has already been shown that it does not work. Yet the politicians tendency to be seen as "doing something" causes us to forget the lesson. People want all party and no pain but the party is over all the booze is gone and now its time for the hangover. As most people are not educated on economic matters and have bought into the fact that these people in government know what they are doing there will be no real outrage until people are hungry and their dreams and lives have been shattered by economic conditions. Remember freedom is just another word for nothing left to lose.

John Polomny
The Real Deal