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.

Пікірлер: 882

  • @marketplaceAPM
    @marketplaceAPM5 жыл бұрын

    SUBSCRIBE to our channel for more economic explainers! kzread.info

  • @tboned5641

    @tboned5641

    4 жыл бұрын

    The FED is NOT Uncle Sam, it is an oligopoly of bankers.

  • @raportmercado1165

    @raportmercado1165

    3 жыл бұрын

    ur blog, web site, or something?

  • @pauldarlington5589
    @pauldarlington55894 жыл бұрын

    1:45 "You can't bring the rate down to a negative level" Oh yeah? Just watch that madness unfold eleven years later.

  • @RipDon7

    @RipDon7

    4 жыл бұрын

    I came here to see this comment.

  • @Kuzyapso

    @Kuzyapso

    4 жыл бұрын

    We once lived in a world where negative interest rates as a joke

  • @m3528i

    @m3528i

    4 жыл бұрын

    Paul Darlington perfect exchange! Thanks all

  • @trollface1994

    @trollface1994

    4 жыл бұрын

    @@RipDon7 and i came here to see this one.

  • @arlo5407

    @arlo5407

    4 жыл бұрын

    I was just writing this comment until I noticed it was already here hhh

  • @TopherVexel
    @TopherVexel7 жыл бұрын

    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

    @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

    @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

    @vinm300

    4 жыл бұрын

    This guy is the best.

  • @Coffee-Candy

    @Coffee-Candy

    4 жыл бұрын

    In addition, it would discourage other countries to store and hold USD as reserve currency.

  • @Erikpdx

    @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

  • @yannbenmaissa1828
    @yannbenmaissa18288 жыл бұрын

    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 !

  • @stevenwortham225
    @stevenwortham2255 жыл бұрын

    Where were you bro when I was in school......that was an excellent explanation

  • @ToxicVaccines_HivHoax

    @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

    @katiejoxox

    3 жыл бұрын

    @@ToxicVaccines_HivHoax Brrcccncsvcryvdvr fshbhgrafbvv vvcz b b in N 🎥📹🔶🔳🔳🔷👷🚐🌽🙃⚛️⛹🏾🌳🍃🍥🥧🍥🙋🏾‍♂️🙋‍♂️🛵🚟🏍📶🏧♏️♐️☦️🎸🪕⭕️🍓🥦🥔🌽🍆🌋🍇🦮🥕🍆🈲🈹🅾️🇦🇮🇦🇮🛤🍥🔳♉️⚛️📳🥔🛎🎖🇲🇷🚩

  • @mireillelebeau2513
    @mireillelebeau25134 жыл бұрын

    After reading on quantitative easing for a month, I finally understand what it is

  • @JohnDoe-gc1kt

    @JohnDoe-gc1kt

    4 жыл бұрын

    Do you feel like this is a great example

  • @m8uwut
    @m8uwut6 жыл бұрын

    "You can't bring the rate down to a negative level..." XD

  • @nh4nd0
    @nh4nd07 жыл бұрын

    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!

  • @niktroublemaker5669
    @niktroublemaker56695 жыл бұрын

    I always been told that QE is printing more money. Never understand how that helps the economy. Until now. You are the best!

  • @HowardBPerer
    @HowardBPerer2 жыл бұрын

    I've been studying this all day and his explanation is the best I've seen!

  • @amineaiffa
    @amineaiffa4 жыл бұрын

    I come from 2019. When he said you can't go to zero.... oh my friends....thats exactly where we are going.

  • @clopez4280

    @clopez4280

    4 жыл бұрын

    Gota pull your money out b4 2020 elections

  • @mrmustangman

    @mrmustangman

    4 жыл бұрын

    @@clopez4280 i dont have any TO pull out...

  • @CosmicSeeker69

    @CosmicSeeker69

    4 жыл бұрын

    @@clopez4280 you might want to do that before mid January 2020...

  • @clopez4280

    @clopez4280

    4 жыл бұрын

    @@CosmicSeeker69 ... who's predicting that?

  • @agusal4487

    @agusal4487

    4 жыл бұрын

    Pull your money out of what? The market, the bank, the mattress or all of the above?

  • @BoomBubbleBustRepeat
    @BoomBubbleBustRepeat4 жыл бұрын

    ME: You Can't bring a rate down to a negative level. FED: HOLD MY BEER!!

  • @darling8741

    @darling8741

    4 жыл бұрын

    They already have in other countries..

  • @ulicesmora783
    @ulicesmora7839 жыл бұрын

    could not be any more helpful and simplified. thank you.

  • @wesleyguan6833
    @wesleyguan68334 жыл бұрын

    the video was created in 2008, but it will be helpful forever! thx for your amazing explanation.

  • @antonioroccabianca777
    @antonioroccabianca7778 жыл бұрын

    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.

  • @islandaerial3414
    @islandaerial34144 жыл бұрын

    2019: Please re-do some of these tutorials please!

  • @mariochristofi6102
    @mariochristofi61027 жыл бұрын

    Thank you mate!! Love how simplified and animated your examples are. Finally i get it!

  • @YusukeFTW
    @YusukeFTW9 жыл бұрын

    A very clear and factual analysis of the situation. Bravo, good sir.

  • @magedawad3649
    @magedawad36495 жыл бұрын

    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.

  • @justobserving7545
    @justobserving75454 жыл бұрын

    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. :)

  • @tombot64
    @tombot644 жыл бұрын

    Wonderful explanation. Thanks guys. Expecially you Mr. Neeson.

  • @DJJimmy30.
    @DJJimmy30. Жыл бұрын

    these videos are from back in the day but hey they explain the concept very well. thank you!

  • @finarrykahn13
    @finarrykahn1313 жыл бұрын

    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!

  • @carlosmascarenhas4905
    @carlosmascarenhas49054 жыл бұрын

    Incredibly clear explanation, much appreciated!!

  • @jfawcett101
    @jfawcett10115 жыл бұрын

    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.

  • @theobradley5926
    @theobradley59264 жыл бұрын

    So clear and concise. You will never be a politician Sir!

  • @jessicarichards3220
    @jessicarichards32203 жыл бұрын

    Thank you so much! This was super helpful and it really summed it up for me perfectly!

  • @petersydney6303
    @petersydney63034 жыл бұрын

    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 👍😀

  • @AhmedEtman79
    @AhmedEtman794 жыл бұрын

    11 years old, still the best explanation ever of quantitative easing.

  • @justme-ux6xo

    @justme-ux6xo

    Жыл бұрын

    Yes

  • @Parksey01
    @Parksey0113 жыл бұрын

    This is the best explanation of qe i've ever seen, and i've seen alot.

  • @Annie-mi2cf
    @Annie-mi2cf3 жыл бұрын

    Amazing content. Clear and very easy to understand

  • @anastasiamelachrinos6530
    @anastasiamelachrinos65307 жыл бұрын

    A very clear explaination of Quantitative easing ! good job !

  • @learningwisdom5161
    @learningwisdom51614 жыл бұрын

    You're amazing. Thank you for creating these types of videos!!

  • @sergelachapelle7992
    @sergelachapelle79924 жыл бұрын

    Ah, finally an explanation that makes sense... by someone who really understands it.... Thank you

  • @saxonhomeboy177
    @saxonhomeboy17710 жыл бұрын

    By God, that was immensely complicated. Thanks for the simplified explanation.

  • @vicenterivera69
    @vicenterivera693 жыл бұрын

    You are the best explaining this!

  • @riskfreetaco
    @riskfreetaco3 жыл бұрын

    Best explantation of QE on KZread and I've watched countless. A 2009 video... 🤔 Thank you!

  • @nateisawesome766

    @nateisawesome766

    Жыл бұрын

    2008

  • @rakkitb88
    @rakkitb882 жыл бұрын

    What a goldmine channel this is. Thank you!

  • @001rahulsingh
    @001rahulsingh9 жыл бұрын

    This the first time i understood this term QE....thanx..

  • @Katkayz
    @Katkayz Жыл бұрын

    Thank you for explaining this complex topic

  • @nandishvpatel2602
    @nandishvpatel26022 жыл бұрын

    Finally I understand QE! Thanks :) KeepSmiling

  • @delskitchiwa
    @delskitchiwa4 жыл бұрын

    Love this guy and his Chanel.

  • @waynecmontgomery
    @waynecmontgomery4 жыл бұрын

    Great video !!! After showing this to high school students. I now need a drink.

  • @percy832
    @percy8324 жыл бұрын

    Thanks. Good simple explanation.

  • @bernie5995
    @bernie59959 жыл бұрын

    great explanation though, I was having trouble understanding it, now I get it. Thanks

  • @dianacamelia2426
    @dianacamelia2426 Жыл бұрын

    Hey! Your explanations are great. I wonder if you have a order of watching your videos to get the right information step by step?

  • @brv1111
    @brv11112 жыл бұрын

    Bloody excellent sir. Thank you for explaining in laymen’s terms.

  • @bokhodirturaev
    @bokhodirturaev2 жыл бұрын

    You cracked it. I am fond of your method of teaching

  • @sallom432
    @sallom4329 жыл бұрын

    Great job explaining it out, really appreciated.

  • @RooseveltAliWashingtonX
    @RooseveltAliWashingtonX10 жыл бұрын

    Brilliant explanation! Thank you.

  • @kevinnakaha1762
    @kevinnakaha176211 жыл бұрын

    best explanation I've found so far...good job

  • @ericvinck1322
    @ericvinck13224 жыл бұрын

    Perfect explanation!

  • @_Mikekkk
    @_Mikekkk Жыл бұрын

    Finally some simple clear explanation.

  • @katiearatcliffe
    @katiearatcliffe10 жыл бұрын

    This is great! I really struggled to wrap my head around this concept, but I think I get it now!

  • @sam4403
    @sam440310 жыл бұрын

    This is GREAT!!! thank you so much! I was having a lot of trouble, and you couldn't have explained this better!!

  • @wuanitamoore5041

    @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?

  • @Dr_Augustus_MD
    @Dr_Augustus_MD15 жыл бұрын

    Excellent and well done video explanation of what quantitative easing is. This is Fed Chief Bernake's latest attempt [folly] to stimulate the economy.

  • @parzrelmuzik
    @parzrelmuzik12 жыл бұрын

    EASY AND CLEARLY EXPLAINED

  • @devondevon4366
    @devondevon43667 жыл бұрын

    excellent explanation of quantitative easing

  • @bazilian0
    @bazilian04 жыл бұрын

    Great explanation, one of the best, thanks.

  • @dlo5640
    @dlo56402 жыл бұрын

    best explanation ive seen yet

  • @00bikeboy
    @00bikeboy9 жыл бұрын

    Thanks for this very clear explanation.

  • @jackhuang6750
    @jackhuang67504 жыл бұрын

    Excellent lecturer

  • @Jubbyzilla
    @Jubbyzilla13 жыл бұрын

    great explanation thanks very much

  • @ricomajestic
    @ricomajestic7 жыл бұрын

    Nicely explained!

  • @aruntubes12345
    @aruntubes1234513 жыл бұрын

    truly helpful. very informative n excellent presently. thanks very much for the post!

  • @vesperita11
    @vesperita1112 жыл бұрын

    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.

  • @Ector521
    @Ector52111 жыл бұрын

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

  • @yakkyuu12
    @yakkyuu12 Жыл бұрын

    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!~

  • @veronicaalessandrello1022
    @veronicaalessandrello10224 жыл бұрын

    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

  • @p72910
    @p7291010 жыл бұрын

    Very clear very comprehensive

  • @anubhavsharmaice
    @anubhavsharmaice12 жыл бұрын

    fantastic explanation sir, top class

  • @Fuzorz
    @Fuzorz10 жыл бұрын

    good explanation, thanx

  • @Tweetogreggieb59
    @Tweetogreggieb592 жыл бұрын

    2 thumbs up good and reliable content From this host consistently videos recommended.

  • @Praful_777
    @Praful_7775 жыл бұрын

    Wonderful explanation, loved it!

  • @marketplaceAPM

    @marketplaceAPM

    5 жыл бұрын

    Thank you! We're happy to ease your quantitative curiosities.

  • @alyonavasilieva5660
    @alyonavasilieva566010 жыл бұрын

    fantastic! very clear. thanks a lot

  • @funkmeister111
    @funkmeister11111 жыл бұрын

    thanks for the explanation... i have a better understanding of QE now...

  • @jaquinblanc
    @jaquinblanc12 жыл бұрын

    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.!

  • @starplatinum2008
    @starplatinum20088 жыл бұрын

    excellent explanation, taking into account the human part.

  • @marcocarcini
    @marcocarcini2 жыл бұрын

    awesome explanation!!

  • @abdulhassan1201
    @abdulhassan12019 жыл бұрын

    yes, I do indeed need a drink!! nice explanation. !!

  • @drno9683
    @drno96834 жыл бұрын

    Thank you for the video

  • @rhutwikm
    @rhutwikm11 жыл бұрын

    thank you for explaining it so nicely! ... even i could understand !

  • @oscarrookie
    @oscarrookie9 жыл бұрын

    Thanks so much! this was a great help. I no longer need a drink, *picks up pen*

  • @alexlai6202
    @alexlai62029 жыл бұрын

    great explanation!

  • @Gazolineboy
    @Gazolineboy13 жыл бұрын

    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?

  • @orlandochavez1697
    @orlandochavez16975 жыл бұрын

    Thank you so much!

  • @janua1998
    @janua19989 жыл бұрын

    well explained.thanks

  • @rlhillier
    @rlhillier13 жыл бұрын

    Excellent! Thank you.

  • @pomoxyz
    @pomoxyz13 жыл бұрын

    great video. appreciated. Thank'you very much!

  • @billbutler9862
    @billbutler98627 жыл бұрын

    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.

  • @erbenton07
    @erbenton074 жыл бұрын

    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

  • @LoffysDomain
    @LoffysDomain4 жыл бұрын

    2:00 Etymology _and_ financial education, love it!

  • @JasonMyersRVA
    @JasonMyersRVA5 жыл бұрын

    Thank you!

  • @HurricaneDane
    @HurricaneDane13 жыл бұрын

    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.)

  • @mdougf
    @mdougf4 жыл бұрын

    Fantastic!

  • @vanguardas9927
    @vanguardas99274 жыл бұрын

    Man I love your videos. 10 years too late I suppose. I was still in middle school 10 years ago.

  • @johan556
    @johan5562 жыл бұрын

    Great explanation, and more relavant than ever, now that we are seeing the consequences of too agressive qe.

  • @smagooginpoop
    @smagooginpoop11 жыл бұрын

    Thank you

  • @emil246
    @emil2469 жыл бұрын

    great explanation! did qe work? did they loan businesses?

  • @rowancostello3491
    @rowancostello34914 жыл бұрын

    Great vid man nice one