Jeremy Grantham of GMO says, there's no proof that the US economy is any stronger from quantitative easing. However, there is some indication that the crash would have been worse and the downturn would have been sharper had the Fed not stepped in. Economic doctrine says the market is efficient. My view of the economy is not really principle-based. Higher interest rates would have increased the wealth of savers. Instead, they became collateral damage of Bernanke's policies. The theory is that lower interest rates are supposed to spur capital spending, right? Then why is capital spending so weak at this stage of the cycle. There is no evidence at all that quantitative easing has boosted capital spending. We have always come roaring back from recessions, even after the mismanaged Great Depression. This time we are not. It's anecdotal evidence, but we have never had such a limited recovery. (VIEW LINK)