Part 2 of 6: Quantitative Easing (QE & QE 2) - The Fed, Finance, and Inflation
This video on the Federal Reserve’s quantitative easing program explains how the Fed "prints money" and who gets the new U.S. dollars or cash. Primary Broker-Dealers, not traditional banks, are involved in the QE process and program. Understanding how QE works enables investors to make better asset allocation and investment decisions or formulate quantitative easing strategies related to wealth preservation and gold. The Fed encourages the Primary Dealers to involve their clients (including Hedge Funds, Sovereign Wealth Funds) in the bond purchase program, which sheds light on how the printed money gets into the real economy. QE has little to do with traditional bank reserves.
Below is part 2 of the 6 part series, this link will take you to QE Video Part 3.