Part 5 of 6: Quantitative Easing: How Does The Money Get Into The Real Economy?
This video explains how the Federal Reserve’s QE program works. Primary broker-dealers, not banks, are the primary recipients of the Fed’s newly printed money. Money manager Chris Ciovacco explains how the Fed inflates the money supply via a bond purchase program with the NY Fed’s 18 primary dealers. Investment strategies and purchasing power protection can be more effective if investors understand the quantitative easing process and the primary dealers' lines of business, involvement in global financial markets, and their global client base. Hedge funds, sovereign wealth funds, and high net worth investors all over the globe can participate in the Fed’s QE 2.0 process. Chris Ciovacco, of Ciovacco Capital Management, explains the possible impacts of the Federal Reserve’s quantitative easing program on the financial markets and your investments by providing rare insight into the Fed’s balance sheet policies.
Below is part 5 of the 6 part series, this link will take you to QE Video Part 6.