QE2 is a plan, it does not mean

FED will be definitely in the market to buy bonds tomorrow. However with the determination shown, we are now more certain that deflation/double dip is less likely, inflation is coming. Modern economy is all about confidence, what people expects usually turns out to be true. So now, nobody is shouting cash is king!, that is what FED wants to change from the beginning: everybody holds onto their cash, acts like a stripped naked dead turkey, do not know where to move.

We still need to monitor the economy development, US and China. With huge trade imbalance and China\'s huge real estate bubble, the journey ahead is far from certain.