Is QE2 A Stealthy $90 Billion Gifting Scheme To The Primary Dealers?

``... by avoiding the tight spread of on the run bonds, the Fed is effectively allowing PDs to pocket a huge bid/offer spread, which assuming a total size of ~$800 billion (low estimate) of all USTs bought over the (initial) life of QE2, aka QE2.5 and higher pre-extensions, amounts to $50 billion over the next 8 months... Why not just drop the pretense and absorb every Treasury auction directly for the next 8 months?''