Quantitative Easing 101
The Ben Bernank’s second dose of quantitative easing has been this month’s hot topic on Wall Street, with countless luminaries from across the globe flooding the internet, television, and even radio waves to voice their opinions on the matter.
Some of it was praise and adulation for the Ben Bernank, but unlike sheep our own resident badasses; Uncle Eddie and Midas, have espoused its stupidity in the premiere episode of NSFW.
And they’re not the only ones.
Their fellow badasses Paul Tudor Jones, Steve Schwarzman, Bill Gross, David Einhorn, and
have all spoken openly against the Ben Bernank’s policy of inflation, citing the inherent danger of it creating more problems than actually fixing them.But what is it really?
Here's those hilarious furry creatures again to explain:
OK, for your homework, list what you guys have done to prepare for it.
How would you have profited from it?
And what would you have done if you were in the Ben Bernank's shoes?
Enjoy the weekend people, class is dismissed.
hahaha, wow so glad i watched that.
can somebody PLEASE intelligently refute at least some of this?
it's been 9 hours and still no one's up to the task dude. Haha.
haha awesome post
i for one cannot refute any of this... so should we keep riding out the equity bubble?
Come on people, this is nice and funny.
But please tell me you do not fully believe this stuff. Whats next someone is going to post a link to the "Zeitgeist Movie" and the book "Goldman Sachs is the Devil".
As OP stated, Gross/PTJ/Rogers/etc have stated that while what Bernanke is doing is not totally the correct move, it will result in what he wants in some form of short-term rally/GDP growth. Likewise without drastic policy changes in trade theory or presidency. Bernanke has little options to devalue the US currency and try to fight deflation.
Puppet A, "But food,healthcare, etc is higher?", Puppet B, "Yes but..."
Everything is higher relatively, which is what deflation is based off. Most of the F500 have reported cost cuts in their last earnings reports, boosted sales through cost cutting. Now if Puppet A's income had increased 5-10%, would all those things be higher? No they would be more affordable.
Destruction of wealth that is what inflation/deflation does with, not if the costs of something is higher. Deflation is a real real risk, if companies are cutting costs but Puppet A, says everything is not affordable still. Deflation is followed up hyper-inflation.
I didn't really like this video. Trying to claim that The Fed pursued QE2 so that Goldman Sachs could profit is a tad bit ridiculous.
As for Ben's options, he had to do this now. Next year the FOMC committee changes and the new members will make the committee much more hawkish. As a result, QE would be less likely to be implemented next year.
I think the video is wrong about deflationary risks. These risks do exist and will put pressure on the economy (take a look at wages, output gap, and unemployment numbers to see some proof that deflation risks do exist). I personally do not believe QE2 will be enough stimulus to actually prevent deflation from occurring.
I also think the maker of the video does not fully understand the process of QE2, since he tried to claim that the Fed is using "our money" to purchase the bonds. That is simply not true. First off, QE2 is technically not even quantitative easing, its credit easing (at least, according to those devil worshiping economists at GS http://www.businessweek.com/magazine/content/10_46/b4203012812548.htm). I only watched it once so perhaps I am misunderstanding his or her point, but this video seems to be stretching to make a lot of these claims.
Great video. LOVED the ending.
I love it! Thanks!
So, these guys think deflation is a good thing? I also don't like the terminology, "using the american taxpayer's money" to enrich GS. Not exactly the case.
Quidem non est hic eligendi error est. Ex ducimus rerum dolorum quaerat. Qui voluptatem tempora rerum magni ab harum. Et quia incidunt rerum id.
Nihil quaerat eum ut harum id expedita. Dolor numquam nihil nostrum qui. Iure occaecati et quia maxime eveniet. Tempora ex in non ad.
Provident deserunt corporis dicta cum ut. Non sed officia rerum est aut. Ut saepe optio atque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...