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Showing posts from November, 2010

Quantitative Easing 2 (QE2)

I'm not sure if everyone knows about this, but it's about what the US Feds is doing to kick-start the American economy. For those who know, yes again. In case you would like to know what it really means, here's a hilarious version . Suffice to say, it's tantamount to printing money at the end of the day, with all the negative implications that come with it. If you recall your basic economics, more money means lower interest rate. This makes it easier for companies to borrow and less attractive for consumers to save. All in, it's meant to keep everyone spending more so that the economy continues to be buoyant. While the first round of QE had done wonders, the questions is whether resorting to it again spells trouble. As we all know, too much of a good thing is never good for you. And QE is not even unequivocably good, so go figure.