Quantitative Easing

Hey Folk

Let take a look at some QE or in long quantitative easing in different places.

QE in short is central bank try to simulate the economy where traditional method is not useful anymore. Layman term…..

US started QE program in Nov 2008 that is call QE1, then QE2 in Nov 2010 and QE infinity in Sept 2012 till 2014.

European Union start QE program in May 2009, argue for very long over EU itself and fundamental problems, still cant solved. Then another QE infinity in Jan 2015. Another expansion of QE is on March 2016. Mario also say that this is about all they have.

Japan is in a very deflation mode ever since 1980s. So they start QE in Oct 2010, Aug 2011, QE infinity April 2013 and expand QE infinity in Oct 2014.

The UK started the QE in March 2009.

We can see that most of the region or country started later than the US. US have a better frequency than EU. EU have got too much internal problems like Greece and their internal structure. Their QE frequency are so long apart so expect them to recover much slower than the US.

Japan had already be in deflation for more than 20 years, the QE now may take much longer to take effect.

Thus this is one of the reason we see US market rallying. The rest of the market are following.
China are getting through its problems. Maybe they are seeing some light at the tunnel.

Cheer