Aces High Bulletin Board

General Forums => The O' Club => Topic started by: Gixer on November 16, 2010, 09:07:48 PM

Title: Video: Quantative Easing Explained
Post by: Gixer on November 16, 2010, 09:07:48 PM
Funny video explaining QE

http://www.creditwritedowns.com/2010/11/video-quantitative-easing-explained.html



<S>...-Gixer
Title: Re: Video: Quantative Easing Explained
Post by: Eagler on November 17, 2010, 06:59:49 AM
good video - explains why we are toast 
Title: Re: Video: Quantative Easing Explained
Post by: RTHolmes on November 17, 2010, 08:30:03 AM
not helpful or informative. or that funny.

biggest false claim which hints that the authors havent got the first clue about economics: deflation is a good thing. wtf? :headscratch:
Title: Re: Video: Quantative Easing Explained
Post by: FiLtH on November 17, 2010, 08:39:54 AM
  Makes ya feel sick.

    I really hope that went the end comes, I can afford a pitchfork to chase after these guys with.
Title: Re: Video: Quantative Easing Explained
Post by: RTHolmes on November 17, 2010, 08:46:57 AM
agreed, people like this that spread fear, panic and misinformation are a disgrace. then again the public have to take some responsibility for blindly believing people with good TV ratings or lots of youtube hits over people who are actually qualified to comment on such a complex subject as macroeconomics.
Title: Re: Video: Quantative Easing Explained
Post by: Nefarious on November 17, 2010, 09:46:36 AM
I really hope that went the end comes, I can afford a pitchfork to chase after these guys with.

You better buy one now, better yet (I'm sure you already have) buy guns & ammo  :aok
Title: Re: Video: Quantative Easing Explained
Post by: Somerled on November 17, 2010, 10:12:38 AM
It amuses me that people are flipping out about "the fed making money out of thin air!!!! :O :O :O" when they don't realize that the fed does that on a daily basis.

The only major difference between open market operations that the fed performs every day to control the money supply and QE is the scope (600 billion over 8 months) and the source of the funds. Normally during open market operations the fed buys/sells treasury securities from banks, increasing or decreasing the money supply. In QE, the fed is buying the treasury securities directly from the treasury.

Also, everyone is panicking that this is going to cause inflation. Yes, thats the point. People really should be panicking about deflation, which we are dangerously close to.

Also, please be aware that if the fed feels inflation is getting too high, they will use open market operations to reduce the money supply.

But, alas, partisan politics and ignorance are driving the narrative.
Title: Re: Video: Quantative Easing Explained
Post by: Gixer on November 17, 2010, 04:41:05 PM
not helpful or informative. or that funny.

biggest false claim which hints that the authors havent got the first clue about economics: deflation is a good thing. wtf? :headscratch:

Actually guy that created it is an commodities trader, so at a guess I'd say he has very good understanding of economics. Plus he never say's that defaltion is a good thing. Only that Helicpter Ben out of the two evils prefers Inflation over Deflation.


<S>...-Gixer
Title: Re: Video: Quantative Easing Explained
Post by: phatzo on November 17, 2010, 08:20:55 PM
  Makes ya feel sick.

    I really hope that went the end comes, I can afford a pitchfork to chase after these guys with.
I'm gunna steal me one.
Title: Re: Video: Quantative Easing Explained
Post by: RTHolmes on November 18, 2010, 02:47:28 AM
Actually guy that created it is an commodities trader, so at a guess I'd say he has very good understanding of economics. Plus he never say's that defaltion is a good thing. Only that Helicpter Ben out of the two evils prefers Inflation over Deflation

hmmm I'm always wary of advice from traders, theres a bunch of ways they make money whatever the state of the markets thanks to futures, derivatives and short-selling etc. and manipulating public perception of the markets is part of their job. whats good for them rarely coincides with whats good for the economy as a whole (ie. long-term stable growth). I made 38% in 4 days of day-trading BP stock back in the summer during the start of the oil spill crisis, the panic and misinformation was great for me, not so good for BP or their long term shareholders ...
Title: Re: Video: Quantative Easing Explained
Post by: deSelys on November 18, 2010, 03:27:53 AM
If you think that 'qualified' people (even Nobel prizes) actually have a clue about real-life economics, think again.

Very good reads, and a real eye-openers (not limited to economics): "Fooled by randomness" and "The Black Swan" by Nassim Nicolas Taleb.