It has been almost 10 years since the Federal Reserve launched its first quantitative easing program – dubbed QE.
QE 2 and 3 have since happened and while the traders love this infusion of money into the market, many will argue its that’s not good.
So watch the video above to find out what QE is and why some people don’t like the idea.
In a nutshell, QE is the Fed’s way of injecting money into the economy. And that’s supposed to jumpstart the economy, which is why the traders love it.
But the market purists want to know where the Fed got the extra money to pour into the economy.
Um….Can you say? Magic? Voila! Or a printing press? Actually These days it’s a few clicks on a laptop – but really — Same thing.
And did this big ol’ govt intervention – actually fix the underlying problems in the economy that caused us to need all that cash? Probably not.
So watch the video to learn more and you decide if you think its a good thing or not.