Quantitative Easing clearly explained
January 14, 2009
Marketplace Senior Editor Paddy Hirsch has a superb video that clearly explains Ben Bernanke’s Plan B to jump-start our sagging economy. The term Quantitative Easing is graphically defined.
Despite this better understanding what Bernanke is trying to do, the plan seems similar to Plan A (providing cheap money to lenders) in that Ben is coming in through the back door. It seems a bit feeble when I think we really need a hammer over the heads of the lenders to make them loan this money.
If these plans do not work, as Hirsch mentions in this video, the dollar will have become greatly devalued and this will be curtains for many of us.
