Melt Up

Got that QE feel again just a slow melt up with basically no down.  The interesting part is that everything's up on what I can only think is inflation fears again?  QE2 was the Fed buying 600 billion in Treasuries with an average duration of 7 years.  So really the Fed swapped with the banks 600 billion in cash for 600 billion in bonds.  How is that inflationary?  No new money introduced 600 billion in assets and ended with 600 billion in assets, but everybody screamed hyperinflation so into stocks and commdities everyone went.  So a similar move while not inflationary is being view as such and so the cycle repeats.  But really the Fed doesn't have a choice now, if they pulled QE3 off the table the market would collapse.  So it seems like a must do for them since we've got the doctrine of market declines can not be allowed.