Quantitative easing

Now the Federal Reserve has effectively cut the target lending rate to zero, it only has one more weapon in its arsenal. Quantitative easing. Senior Editor Paddy Hirsch explains what this nuclear option it is, and what the Fed hopes itll do.
Video Rating: 4 / 5

The bears are back to discuss the latest doings by the Federal Reserve and The Bernank. September 2012 Update: Check out my essay on how the Fed thinks QE will create jobs: omidmalekan.com and another on the way the Media covers the Federal Reserve: omidmalekan.com by Omid Malekan www.omidmalekan.com @malekanoms
Video Rating: 4 / 5

Tags: ,

47 Responses to “Quantitative easing” Subscribe

  1. RonPaul2012Anon4evr January 19, 2013 at 6:06 am #

    This is way to smart for me to post for some of the idiots on craigslist..I’ll just stick with this one thanks.watch?v=M4hH01exSwI

  2. Ector521 January 19, 2013 at 6:45 am #

    @APM Marketplace
    Thank you for your video. What kind of books on Finance would you recommend to read?

  3. treemofo January 19, 2013 at 7:39 am #

    OK, Where else would you have the banker invest ? Give money to people so they could buy things they can’t afford and default on their loans. I would rather collect 2% it is guaranteed money. Also, you can’t assume that inflation rate of 5% is going to be the same over 5 or 10 yr period. If you check the US inflation rate for the month of November 2012, it was 1.8%.

  4. blasterr zee January 19, 2013 at 7:48 am #

    @Dinna Miravite Banks at the time were not taking any risks , it is possible , treasuries , due to their safety often yield low leves of dividends

  5. trueconservatie33 January 19, 2013 at 8:23 am #

    Can someone explain it to me once and for all is QE printing money, because my dad said it is literally printing money? and Bernanke said on 60 minutes that the money in circulation remained same. If so how are central banks buying bonds or debt? do they just simple credit the balance sheet?

  6. smagooginpoop January 19, 2013 at 9:06 am #

    Thank you

  7. Amod Mallya January 19, 2013 at 9:34 am #

    money and credit are 2 different things. Bernanke said that the money is not actually printed but is transferred electronically into the banks. So his explanation is that if the money is not actually printed, it won’t devalue the currency. As of now, only 3% is in the physical form as far as i know. So if in case, there is a bank run, banks would be out of cash in no time and would therefore ask the fed to print the money so that its customers could withdraw it.

  8. Amod Mallya January 19, 2013 at 10:10 am #

    he is talking about the interest rate at which the banks can borrow money from the federal reserve.

  9. Amod Mallya January 19, 2013 at 10:45 am #

    i think what he is trying to say is that atleast the banker will not lose all the money going by the risk involved in lending to businesses.

  10. SuperPigcow January 19, 2013 at 10:55 am #

    how can the banker make money is INFLATION is 5% and the treasuries are making him 2%?

  11. SuperPigcow January 19, 2013 at 11:13 am #

    my question exactly

  12. John Ulicky January 19, 2013 at 12:00 pm #

    The federal reserve is a PRIVATE BANK it is NOT part of the US treasury, or any part of the US government. Its about as federal as Federal Express. Congress has no say in its actions, other than to beg for money, to pay off the interest, for the money they borrowed.

  13. betastate January 19, 2013 at 12:51 pm #

    Why does the government need the federal reserve to print money? Can’t they just make a national bank and print money to borrow to people at 0% interest directly?

  14. Denise Hutto January 19, 2013 at 1:28 pm #

    Treasuries are considered risk free assets because they are backed by the Federal Reserve. Even if the Feds don’t have the money, they will simply print money to give to you, that’s why they are risk free.

  15. Denise Hutto January 19, 2013 at 2:17 pm #

    Mate, if you give me 100 dollars and I get 102 dollars I make 2 dollars. You’re making the loss due to inflation, I’m making money from nothing…

  16. andrew1717xx January 19, 2013 at 2:47 pm #

    The bulk of your analysis, including you brief disclaimer at the end has the premise of humanism towards the banks and the government. I think it is very dishonest to use humanism, especially to justify the financial privlage of the bankers and the government.

  17. Drumaticable January 19, 2013 at 3:35 pm #

    Except they use moppets in the white house, not just paintings. You know, so they will REALLY get it! :)

  18. IIbikerII January 19, 2013 at 4:21 pm #

    Backed by the Government, who guarantees to repay them

  19. smagooginpoop January 19, 2013 at 5:08 pm #

    when he says “they cut the rate,” is he talking about the discount rate or the federal funds rate?

  20. wickidflash January 19, 2013 at 5:28 pm #

    treasuries are safe as long as the government is able to pay it back, either through taxes or new loans to pay off the old loans. Foreign investors know this, and have been losing faith in us treasury bonds because of our unsustainable debt. Therefore, quantitative easing. When the central bank is the ONLY buyer of a country’s debt, inflation is more likely to occur.

  21. Dinna Miravite January 19, 2013 at 6:25 pm #

    Why are Treasuries safe ?

  22. Dinna Miravite January 19, 2013 at 6:33 pm #

    If inflation is 5% and the banker is getting 2% on treasuries, how in the world is he making money ?

  23. TheGr8crusader January 19, 2013 at 7:05 pm #

    @Hypercube9 but money is just fake subsidies! Money is worthless…what’s a $1,000,000,000,000, really it’s a joke. Money is not food or shelter or fuel, no, money in its paper form is government imposed debt. Money creates nothing but more money. It’s a Ponzi scheme and the gigs up. Hope you’ve got a garden…

  24. AncientMarinerNY January 19, 2013 at 8:03 pm #

    Listen to the bear with the Argentine’s football jersey (blue/white strips) … Argentines know what it is to have an hyperinflated currency and to suffer through total destruction of their economy …

    Decades ago there was a saying “As Rich as an Argentine” which is long dead and buried in the sorry history of their nation … and now “America is the land of opportunity” is slowly fading away … 

  25. Vik M January 19, 2013 at 8:31 pm #

    F-ck Republicrats. I’ll never contribute and vote for Democrats and Republicans for as long as I live. CrackTheSkyes is onto something….a true American that wants American sovereignty.

  26. deja vu January 19, 2013 at 8:39 pm #

    if you want a solution you have storming the bastille and the guillotine vs gandhi.

    the global corpirate response to either is to go underground and pull the plug on the peasants. so compute the odds of a coup within the corpirate ship of state. that is why so many believe in jesus zorro v for vendentta or 12 21 12 hope.

  27. deja vu January 19, 2013 at 8:43 pm #

    50 mil ebt x 1500 year = 7.5 billion per year. a drop in the bucket vs every trillion to wall st. investment banks ie hedge fund casino players. ok soc sec medicare etc. 250 billion. still 1/4 of a trillion to wall st so what moron is pro austerity? the real welfare cheats are the wall st banks and int’l corporations that pay near zero taxes anjd hire offshore workers. the only difference between the two us pol parties is one wants to eliminate 1/4 of every trillion that feeds 99% the other not

  28. NoName NoFame January 19, 2013 at 9:14 pm #

    the Yellow Bear for President !!

  29. doogan doobing January 19, 2013 at 9:27 pm #

    my girl friend talked to a finance guy who said he explained how this wasnt bad and I said wwhat did he say she was like I dont know go obama 

  30. ironjohnlad January 19, 2013 at 10:09 pm #

    reverse quantative easing,would mean selling the bonds and taking money out of the system. Were shares have been inflated in the price, with QE, they will also go down when QE is reversed it takes money out of the stock market, shares come down by the same amount. So it can crash from the over inflated prices produced from the QE.

  31. sandfya January 19, 2013 at 10:26 pm #

    I love this video. QE3 or QE-insanity?

  32. g10bus January 19, 2013 at 11:25 pm #

    48+ Million EBT swipers (look it up here on youtube == Swipe yo EBT) will not appreciate this — as they will need to return from being parasitic to being productive and useful for somebody else. Not sure there is a smooth way of doing things.

  33. Nazteee January 19, 2013 at 11:54 pm #

    You can’t crash the market with reverse QE.Stock prices directly reflect the short/long-term growth of a company, not how much money is in the economy.

  34. Cat Watters January 20, 2013 at 12:37 am #

    I would love to see part 4 of these vids show the little characters having a Nervous Breakdown and being taken away in straight jackets from system Overload trying to understand this Insanity!! That would be an ACCURATE illustration of QE3!!

  35. kitchitwee January 20, 2013 at 1:27 am #

    I find these videos highly informative, but I feel that they would be much more effective with the average person if real voices were used.

  36. AbrakaZunda January 20, 2013 at 1:49 am #

    Will be shared on Hype and Fail on Facebook. Fed FAIL! Also, for a recent review of the various QEs and what they mean: canadafreepress (d0t) com / index (d0t) php/article/49842

  37. DikkieDikism January 20, 2013 at 1:56 am #

    lol the bernanke zone, but yeh i pity americans, well and my fellow europeans whom are now basicly under a similar printing system to bail out countries that should never have been part of the EU zone or indeed we shouldnt even try for a 1 EU state like “zone”.

    *sighs* well at least im preparing with gold and silver/food etc.
    Hopefully people will refuse to fight and die for bankers this time around.

  38. Tyson Neil January 20, 2013 at 2:25 am #

    Brilliant job, love it!

  39. RODRIGOR300 January 20, 2013 at 2:32 am #

    love it hahahha

  40. Mikenoronha January 20, 2013 at 3:05 am #

    It is a system which has conscripted vast human and material resources into the building of a tightly knit, highly efficient machine that combines military, diplomatic, intelligence, economic, scientific and political operations” – John F. Kennedy

  41. Mikenoronha January 20, 2013 at 3:06 am #

    “Today no war has been declared — and however fierce the struggle may be, war may never be declared again in the traditional fashion. But our way of life is under attack. We are opposed around the world by a monolithic and ruthless conspiracy that relies primarily on covert means for expanding its sphere of influence — on infiltration instead of invasion, on subversion instead of elections, on intimidation instead of free choice, on guerrillas by night instead of armies by day…

  42. Gary Randolph January 20, 2013 at 3:52 am #


  43. hank williams January 20, 2013 at 4:30 am #

    just announced QE$ is in effect

  44. Jesse Sears January 20, 2013 at 4:56 am #

    at least till its used

  45. lazytd January 20, 2013 at 5:42 am #

    this vid doesn’t address the new twist of the bernank buying mbs…we need you to update this or do a new version for qe3… good stuff! Thanks!

  46. MJCLAXDEN January 20, 2013 at 6:13 am #

    Love it!

  47. jaymum23 January 20, 2013 at 6:18 am #

    There will be many and don’t forget precious metals! Especially industrial ones.

CIGI Experts Outline Prescriptions for Cannes Summit and Beyond in Special Report on G20 Issues

Waterloo, Ont. (PRWEB) October 20, 2011 With a possible euro zone collapse and Greek insolvency likely to dominate the upcoming [...]

Pathways Home Health and Hospice Satu Johal Receives CFO of Year of the Year Award; Silicon Valley Business Journal Honoree

Sunnyvale, California (PRWEB) December 02, 2011 Satu Johal, CFO at Pathways Home Health & Hospice, received the Silicon Valley Business [...]

Latest Financial Regulation News

Working Together Towards Better Financial Regulation and Stability in Asia Image by Asian Development Bank Tellers attend to clients in [...]

European financial regulation – 4 questions to Olivier Garnier (Societe Generale)

Olivier Garnier, Chief economist at Societe Generale Group, expresses his view on European financial regulation and its reform. Video interview [...]

AMS Health Care Mortgage Corporation Provides Debt Service Savings to Hospitals Utilizing FHA 242 Mortgage Insurance Program

Jacksonville, FL (PRWEB) August 30, 2013 An oft-overlook and relatively unknown federal program for hospitals seeking capital for needed and [...]

Vermont’s Captive Insurance Industry Off to Best Start Since 2005

Montpelier, VT (PRWEB) April 16, 2012 First quarter licensure of new captive insurance companies is off to a strong start [...]