Quote:
Originally Posted by artwilliams
Quantitative Easing is not printing money. It changes the make up of the money supply by turning government bond holders into cash holders. The amount of money in circulation remains the same. Just saying.
(For those interested ... The government buys back their bonds at a market price. The people who held the bonds now have cash. Many of them take the cash and put it in the stock market. The demand for stocks is driven up and so are the stock prices. When the government starts to resell their inventory of bonds, at some time in the future, it's feared that it will crash the stock market.)
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Thanks for the explanation. It's why I put a question mark beside the term.
So are you saying that the market is up because of current quantitative easing?