Forget QE3, Let's Take Back QE2 If We Can

NEW YORK (TheStreet) -- As the European market circles the drain, the Federal Reserve is increasingly expected to announce another round of quantitative easing. If the Fed moves forward it will have greater flexibility than its counterparts in Europe.

The S&P 500 ETF SPY(SPY) has moved well off June lows and is pricing in more money, more money, more money. It's unfortunate that we are left in this situation after government program after government program have not only failed but weakened our nation.

Given the government's inability to get us out of our financial mess -- and only make it worse -- it's difficult to reconcile the thought processes of intervention advocates. We do not need another round of QE to prove that the Washington needs to take a step back.

Washington is endeavoring to do the best it can in a tough situation. Of course, in Congress that means passing legislation it believes will aid the members in the next election, regardless of the future consequences. With elections every two years, it should come as no surprise that it has become impossible to predict what the tax rates will be in three years. While calls for more quantitative easing become louder and louder, the cries to stop the never-ending meddling by the government fall on deaf ears.

Seriously, how the hell can one expect the market to react differently after a third round of kicking the can down the street considering the first two didn't demonstrate an appreciable benefit to anyone other than insiders? How many people still believe that a simple increase in the speed dial of the printing press is going to help the country?

The warnings have been loud and clear for years that we would someday have to pay the piper. The whole mess would be funny if so many people didn't get hurt in the process. The "do gooders" in Washington are the real problem and they have largely sidestepped the blame they so rightly deserve.

For starters, "do gooders" in Washington created expensive programs to put people in homes that they couldn't afford. The programs were sold on the false premise of helping the working poor and the middle class realize the "American dream." The reality is that people who did the right things and saved for a home had to compete against those that didn't, resulting in higher home prices.