QE - Quantitative Easing Bernanke style as explained graphically by the New York Times

There you have it !

Whats missing is how the Banks get the bonds to start with, well, the Treasury auctions the bonds off to the Primary Dealers who hold the bonds for about a week or two, then the Fed comes along and utilizing their POMO they buy the bonds back at a tidy profit to the Primary Dealers. The Primary dealers then use this profit to boost the market and VOILA !!! instant wealth for all Americans....except...NOT !