Quantitative Easing | Marketplace Whiteboard
If the whole idea of Quantitative Easing is confusing to you, you are not alone. Paddy Hirsch breaks it down in this economic explainer.
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To understand QE it's important to understand that it essentially entails the Fed buying bonds to keep interest rates down, encourage lending and stimulate the economy.
#QuantitativeEasing #Whiteboard #MarketplaceAPM
If the Fed does reduce bond buying short-term interest rates will likely rise. But the Fed doesn’t want the public to think that the Fed is raising the official interest rate. This is really difficult for the Fed because the point of bond buying is to keep interest rates low. Therefore it's logical that by buying fewer bonds the interest rates would go up.
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@tboned5641
4 жыл бұрын
The FED is NOT Uncle Sam, it is an oligopoly of bankers.
@raportmercado1165
3 жыл бұрын
ur blog, web site, or something?
1:45 "You can't bring the rate down to a negative level" Oh yeah? Just watch that madness unfold eleven years later.
@RipDon7
4 жыл бұрын
I came here to see this comment.
@Kuzyapso
4 жыл бұрын
We once lived in a world where negative interest rates as a joke
@m3528i
4 жыл бұрын
Paul Darlington perfect exchange! Thanks all
@trollface1994
4 жыл бұрын
@@RipDon7 and i came here to see this one.
@arlo5407
4 жыл бұрын
I was just writing this comment until I noticed it was already here hhh
This is BY FAR the best explanation of quantitative easing I've found. It also explained why it's so risky, since the government is just eating "risky assets" like a debt collector. Long-term it can't be a solution, since the entropy (cost of risky assets vs value recovered) will eventually force a collapse.
@tiendoan1333
4 жыл бұрын
QE is an unprecedented concept, and it is hugely controversial on whether or not it will work in the U.S I'm excited to see what will happen in the future
@15past2
4 жыл бұрын
Quantitative easing is a method for the privately owned Fed to give money, that belongs to the people, to their subordinates, the major banks, free money to buy off American and international companies and interests! To own and control YOU! Its a scam and anybody who doesn't see that is swallowing fake matrix pill!!!
@vinm300
4 жыл бұрын
This guy is the best.
@Coffee-Candy
4 жыл бұрын
In addition, it would discourage other countries to store and hold USD as reserve currency.
@Erikpdx
4 жыл бұрын
@@15past2 the balance sheet isn't your money...it has nothing to do with taxes collected by the US Treasury. The banks don't get it for free. They sell assets to the Fed. You're full of conspiracies and empty on facts. Go watch the video again bro
Your explanations are cristal clear and concise with recurrent use of analogies. I am a University Professor in Computer Science and I know what I am talking about ... You are much more than a Senior Editor. You should teach at the Biggest Universities, sir !
Where were you bro when I was in school......that was an excellent explanation
@ToxicVaccines_HivHoax
4 жыл бұрын
QE is legalized cash counterfeiting. It is a crime no matter who does it, even the Reserve Federal Bank, that is not Federal (it is a private bank) and has got no reserves.
@katiejoxox
3 жыл бұрын
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After reading on quantitative easing for a month, I finally understand what it is
@JohnDoe-gc1kt
4 жыл бұрын
Do you feel like this is a great example
"You can't bring the rate down to a negative level..." XD
Most epic penthrow finale on finance videosi have seen. And by the way: Thanks! This is the most clear explanation of quantitative easing i have found of any kind of source!
I always been told that QE is printing more money. Never understand how that helps the economy. Until now. You are the best!
I've been studying this all day and his explanation is the best I've seen!
I come from 2019. When he said you can't go to zero.... oh my friends....thats exactly where we are going.
@clopez4280
4 жыл бұрын
Gota pull your money out b4 2020 elections
@mrmustangman
4 жыл бұрын
@@clopez4280 i dont have any TO pull out...
@CosmicSeeker69
4 жыл бұрын
@@clopez4280 you might want to do that before mid January 2020...
@clopez4280
4 жыл бұрын
@@CosmicSeeker69 ... who's predicting that?
@agusal4487
4 жыл бұрын
Pull your money out of what? The market, the bank, the mattress or all of the above?
ME: You Can't bring a rate down to a negative level. FED: HOLD MY BEER!!
@darling8741
4 жыл бұрын
They already have in other countries..
could not be any more helpful and simplified. thank you.
the video was created in 2008, but it will be helpful forever! thx for your amazing explanation.
Thank you very much for your lesson: for the first time I understood the Quantitative Easing and my level of English is upper intermediate. Thanks again your lesson is gold to me. You have the gift for teaching, no doubt about it. Grazie. Antonio from Italy.
2019: Please re-do some of these tutorials please!
Thank you mate!! Love how simplified and animated your examples are. Finally i get it!
A very clear and factual analysis of the situation. Bravo, good sir.
Your videos are very important to me... the amount of knowledge transferred in such a simple manner is amazing. I never thought quantitative easing could be so easy. Thanks a lot and please keep it up.
Why is this video so much under valued to the public. People should be watcing this kind of videos so that the awareness will be increase. And can avoid mistakes in the future. The video looks super simple because he uses real examples with no difficult words involve. Great job for this channel. :)
Wonderful explanation. Thanks guys. Expecially you Mr. Neeson.
these videos are from back in the day but hey they explain the concept very well. thank you!
WOW. this is the first demonstration that actually made sense. If it isnt bad enough that our country is in the position of having to resort to quantitative easing, risk hyperinflation, and print money to revive an unsustainable economic model, now I have to have a foreigner be the only one who can adequately explain the process to by which my own government taxes me by denigrating my purchase power. THANKS!
Incredibly clear explanation, much appreciated!!
Very good video. It's all about the marketing really. Imagine we called a spade a spade, instead of Quantitative Easing, we used the term "counterfeiting". When it's QE, a gullible public focuses on CEO bonuses. Call it Counterfeiting, and you have a revolution on your hands.
So clear and concise. You will never be a politician Sir!
Thank you so much! This was super helpful and it really summed it up for me perfectly!
Very clever man you are because you not only have great knowledge but able to explain difficult concepts in a simple manner. Love your videos and working my way through all of them 👍😀
11 years old, still the best explanation ever of quantitative easing.
@justme-ux6xo
Жыл бұрын
Yes
This is the best explanation of qe i've ever seen, and i've seen alot.
Amazing content. Clear and very easy to understand
A very clear explaination of Quantitative easing ! good job !
You're amazing. Thank you for creating these types of videos!!
Ah, finally an explanation that makes sense... by someone who really understands it.... Thank you
By God, that was immensely complicated. Thanks for the simplified explanation.
You are the best explaining this!
Best explantation of QE on KZread and I've watched countless. A 2009 video... 🤔 Thank you!
@nateisawesome766
Жыл бұрын
2008
What a goldmine channel this is. Thank you!
This the first time i understood this term QE....thanx..
Thank you for explaining this complex topic
Finally I understand QE! Thanks :) KeepSmiling
Love this guy and his Chanel.
Great video !!! After showing this to high school students. I now need a drink.
Thanks. Good simple explanation.
great explanation though, I was having trouble understanding it, now I get it. Thanks
Hey! Your explanations are great. I wonder if you have a order of watching your videos to get the right information step by step?
Bloody excellent sir. Thank you for explaining in laymen’s terms.
You cracked it. I am fond of your method of teaching
Great job explaining it out, really appreciated.
Brilliant explanation! Thank you.
best explanation I've found so far...good job
Perfect explanation!
Finally some simple clear explanation.
This is great! I really struggled to wrap my head around this concept, but I think I get it now!
This is GREAT!!! thank you so much! I was having a lot of trouble, and you couldn't have explained this better!!
@wuanitamoore5041
4 жыл бұрын
Professor Randall Wray from the University of Kansas estimated that the federal reserve Bank has spent 27 trillion dollars since the great recession of 2008. One has to ask the obvious question! Why has quantative easing not worked?
Excellent and well done video explanation of what quantitative easing is. This is Fed Chief Bernake's latest attempt [folly] to stimulate the economy.
EASY AND CLEARLY EXPLAINED
excellent explanation of quantitative easing
Great explanation, one of the best, thanks.
best explanation ive seen yet
Thanks for this very clear explanation.
Excellent lecturer
great explanation thanks very much
Nicely explained!
truly helpful. very informative n excellent presently. thanks very much for the post!
Please don't kill the messenger. Great video. Thank you for posting. It's good to understand about "danger of deflation" before watching this video.
@APM Marketplace Thank you for your video. What kind of books on Finance would you recommend to read?
As dated as this is--EVERY single investor and STUDENT of Finance --this should be MANDATORY watching, learning and YES --- there will be a TEST! If you do not get 80% competency on passing the test of this video---- you JUST KEEP REPEATING it --- until it is INGRAINED in your mind!~
hahaha... love your unique signature at the end of your videos. Excellent! I have learned so much from you. The whole storyline is that we live in an era where no one trusts no one or anything. It's hard to understand how comes that living in a era of advance technology Humans still can't communicate properly. With no TRUST any transaction or relationship is pointless and as a result too risky. This is when a holistic and functional finance approach could end the chaos. No wonder why wall street traders end up like Buddhist monks. We must accept that the best options are to introduce a more holistic approach in finance to generate TRUST, we could start by ending economy colonialism, imperial WARS, and aggressive interventions with iligal economic sanctions to other nations that are trying to fix their own problems without the piracy threats. NO MORE WARS - NO MORE IMPERIAL COLONIALISM - NO MORE WILD CAPITALISM - NO MORE DENIAL!!!! WE MUST INVEST IN ****TRUST***** AS IN THE WARRANTY AND SECURITY THAT NO ONE ELSE IS A THREAT TO OTHERS. NO MORE PSYCHOPATHS DREAMING WITH THE DOMINATION AND THE ONE WORLD ORDER. NO MORE SECRETIVE SOCIETIES. NO MORE TAX HEAVENS. NO MORE SPIDER WEBS. kzread.info/dash/bejne/iIWuqJSQaLaWZNI.html kzread.info/dash/bejne/oKST286vk5vAmps.html
Very clear very comprehensive
fantastic explanation sir, top class
good explanation, thanx
2 thumbs up good and reliable content From this host consistently videos recommended.
Wonderful explanation, loved it!
@marketplaceAPM
5 жыл бұрын
Thank you! We're happy to ease your quantitative curiosities.
fantastic! very clear. thanks a lot
thanks for the explanation... i have a better understanding of QE now...
Hi, Paddy, I had my drink , bit of red wine and french blue cheese. Your lessons are so nice and clear and easy and presentable. you should come to Kaplan singapore and teach Uni. Of Bedfordshire. Special lecturer. Most of my lecturers part time sucks.!
excellent explanation, taking into account the human part.
awesome explanation!!
yes, I do indeed need a drink!! nice explanation. !!
Thank you for the video
thank you for explaining it so nicely! ... even i could understand !
Thanks so much! this was a great help. I no longer need a drink, *picks up pen*
great explanation!
What's up with all the poindexters here..? This guy does an excellent job on explaining QE in a way that non-economists MAY be able to understand. And of course it's not totally accurate. What did you expect in 7:37 minutes, a full MBA class in advanced monetary policy?
Thank you so much!
well explained.thanks
Excellent! Thank you.
great video. appreciated. Thank'you very much!
Thanks, good vid. This seems to show that instead of decreasing the risk of loans from the bank the US has increased the risk of its Government Bonds.
Devaluing the dollar effectively raises prices for you and me. Your dollar is worth less and it takes more of them to buy a given item
2:00 Etymology _and_ financial education, love it!
Thank you!
A great explanation of the theory behind QE, however, the reality is that the US has so much debt that an increase in interest rates means that the amount of debt owed will increase dramatically. By pumping money into the economy, the fed can keep those interest rates low, meaning we won't incur more debt through interest. (But that doesn't really matter because our daily deficit is so high that the debt is increasing anyway.)
Fantastic!
Man I love your videos. 10 years too late I suppose. I was still in middle school 10 years ago.
Great explanation, and more relavant than ever, now that we are seeing the consequences of too agressive qe.
Thank you
great explanation! did qe work? did they loan businesses?
Great vid man nice one