Jim Grant offers a great analysis on Quantitative Easing andtheFederal Reserve. The Federal Reserve is a manipulator of asset prices. Absolutely sees asset bubbles. Iowa farmland selling for over $9,000 per acre. When these bubbles burst, people should write nasty letters to Bernanke personally as he is responsible for the bubble (s). The banking system inclusing the Federal Reserve is hugely levered.
The Federal Reserve is in a state of panic.