Interesting piece from Ashutosh at his blog on Quantitative Easing and the implications it might have on markets.
One particular statement that I like is
"We are in an era where markets are overly dependent on Central Bank support. The design of the QE framework was that it will work mainly through the financial (asset prices) economy rather than real (capacity creation) economy. Therefore, when there is even whiff of withdrawal of quantitative stimulus the markets are reacting very negatively. The message from the markets is that the World is in QE trap and the foundations of the decade old expansion (post GFC) is on extremely shaky ground. Balance sheet normalization has been and will be a major challenge for all the policymakers. Markets would force the policymakers more than ever to continue to pursue loose monetary policy"