Thursday, November 18, 2010

quantitative easing explained

This video is great. The only thing I don't agree with is the characterization of Goldman Sachs as an evil corporation. The Federal Reserve buys treasuries from Goldman rather than directly from the Treasury because the Fed is incompetent, but Goldman can't be criticized for taking the Fed as a customer. If the Federal reserve came to you as a huge customer who wants to buy 600 billion dollars of investments, would you say "no, do it yourself"? Of course not!