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The US Federal Reserve "stunned" investors on Wednesday with its plan to buy $300bn of government debt, an attempt to drive down yields on long term securities (which helps both private credit markets and the US government finance deficits). It also announced that it was doubling its purchases of Fannie and Freddie securities.

According to the FT, once the Fed's plans are fully realized its balance sheet could swell to $4,ooobn, one third the size of the US economy.

Bernanke has long argued that the Great Depression was partially the result of inaction by policymakers. However this saga ultimately plays out, history will never say the same of him.