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Wednesday, November 17, 2010

Watch and Download Quantitative Easing Explained from YouTube

Do you know what is Quantitative Easing? Have you watched the the 'Quantitative Easing Explained' on YouTube?

Now you can download 'Quantitative Easing Explained' from YouTube to your computer with Leawo Free YouTube Downloader, which is free and can download Flash videos from almost all websites.

In United States, the Quantitative Easing (QE) policy is the recent move of the Federal Reserve. The first round of QE was carried out two years ago, now QE is in the second round. In this round of quantitative easing policy, the central bank will buy $600 billion in long-term Treasuries over the next eight months, the Fed said on November 3rd. The Fed also announced it will reinvest an additional $250 billion to $300 billion in Treasuries with the proceeds of its earlier investments.

Quantitative Easing
However, this policy is unpopular and receives a lot of criticism from Americans. Ben Bernanke, the chairman of Federal Reserve, is emerging as a high-profile scapegoat as critics ridicule his new quantitative easing policy.

Interestingly, six days ago, a YouTube user called 'malekanoms' posted a video titled 'Quantitative Easing Explained', which is an animation with two cartoon characters discussing quantitative easing. This video is viral and has been viewed 1,310,041 times on YouTube so far.

In this YouTube video, the cartoon characters think that Ben Bernanke's quantitative easing policy is nothing but just printing money -
"Why not call it the printing money?" asks once comic character of the other. "Because the printing money is the last refuge of failed economic empires and banana republics and the Fed doesn't want to admit this is their only idea."

According to Wikipedia,
Quantitative easing (QE) is a monetary policy used by some central banks to increase the supply of money by increasing the excess reserves of the banking system, generally through buying of the central government's own bonds to stabilize or raise their prices and thereby lower long-term interest rates. This policy is usually invoked when the normal methods to control the money supply have failed, i.e the bank interest rate, discount rate and/or interbank interest rate are either at, or close to, zero.

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