QE2 Explained, Fed Buys Treasuries From Banks (Marketplace Video)

To prep ya'll for the potential of QE3. Paddy Hirsch, Senior Editor at Marketplace, explained how QE2 (quantitative easing part 2) works in the video below (from 10/07/2010). In summary: The Fed buys Treasury bonds from the banks which, in turn, gives banks a fresh wad of cash reserves to lend. As money gets lent out, it's supposed to stimulate the economy. I'd like to see a video explaining how QE2 makes stocks rally. I'm posting a chart comparing Treasury yields and the S&P next.

Uncle Ben goes shopping from Marketplace on Vimeo


Jon Stewart: The Fed Isn't Printing Money, It's Imagineering Money (Daily Show Clip), Morgan Stanley Explanation (BASE, M2, MZM) (12/9/2010)

Quantitative Easing Explained, "The Deflation is Very Bad" (Cartoon) (11/13/2010)

Bernanke at Jacksonville University on Commodity Price Increases, Fed Balance Sheet and How They Aren't Printing Money (11/5/2010)

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