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

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.

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

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

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

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

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

"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!

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. :)

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

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.

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!

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

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.

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

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

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.

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

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

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

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

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

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 👍😀

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

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

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

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

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

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.

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

Incredibly clear explanation, much appreciated!!

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. kzfaq.info/get/bejne/jLeqeZWInbmUZKM.html kzfaq.info/get/bejne/pNaPrM-nyJ6-mmw.html

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

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

A very clear explaination of Quantitative easing ! good job !

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

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

Thank you for explaining this complex topic

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.

Amazing content. Clear and very easy to understand

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?

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

Finally some simple clear explanation.

What a goldmine channel this is. Thank you!

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.!

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

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

Finally I understand QE! Thanks :) KeepSmiling

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

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.)

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

Thanks. Good simple explanation.

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!~

Brilliant explanation! Thank you.

Perfect explanation!

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

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

So this is how banks get free money and we borrowed money from bank pay interest like slaves.

Great job explaining it out, really appreciated.

excellent explanation of quantitative easing

fantastic explanation sir, top class

You are the best explaining this!

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.

Great explanation, one of the best, thanks.

excellent explanation, taking into account the human part.

Excellent lecturer

great explanation thanks very much

best explanation ive seen yet

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

Nicely explained!

Thanks for this very clear explanation.

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

Very clear very comprehensive

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

awesome explanation!!

2:00 Etymology _and_ financial education, love it!

good explanation, thanx

Great, thanks. I'd love to see another clip about Qualitative Easing! "Qualitative easing is a shift in the composition of the assets of the central bank towards less liquid and riskier assets, holding constant the size of the balance sheet (and the official policy rate and the rest of the list of usual suspects)" (Financial Times definition)

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.

EASY AND CLEARLY EXPLAINED

Great explanation of QE the only thing it left off was why it will fail. Because QE does not address the real problem, credit worthiness. It only addresses the symptom.

great explanation!

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

Didn't work because instead of lending banks speculated on asset prices which is why we've seen a rise in gold and other commodities. Now in desperation the government in the UK is trying to engineer a house price bubble. We've had QE1, QE2, QE3 and QE4 even the man who invented QE says it isn't working and it's not going to work. Neoclassical economics is fundamentally wrong and 5 years have been wasted proving it. It didn't predict the crash and it will only make it worse.

Love this guy and his Chanel.

fantastic! very clear. thanks a lot

Wonderful explanation, loved it!

well explained.thanks

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

Thank you for the video

Hello, just found your channel...at the beginning of your video you mentioned you cant bring interest rates to 0, or negative. I guess they can and they will...interesting times!

great video. appreciated. Thank'you very much!

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

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

Good video. The only issue here and it is a glaring one is of the topic of bond prices. You'd think the ultra low yields would decrease their demand but in the recent years that has not been the case. So much so that the yield to maturity on a lot of sovereign bonds is now negative. Bond prices go up as yields decrease and theoretically speaking the price of a bond can increase much further than the zero or even much more negative yields possible.

The sad thing is, not only is there nowhere to go once nominal short-term interest rates reach zero %, but adjusted for inflation, the REAL interest rate becomes a negative interest. No doubt why when Bernakie talks about ceasing QE, the stock market takes a dive.