There is a a lot of market chatter about QE (quantitative easing). I suspect a good many novices read my blog. I found a couple of informative Youtube entries on QE. The first is from a year ago and tries to explain in as much plain English as possible (link1).
The second is a Bloomberg interview from about a week ago, with James Grant (link2).
Aggressive use of QE is almost sure to end badly. That said, estimating the time table, or which assets will move up or down and when is more difficult. Second level effects are likely to produce unexpected market moves, unexpected inefficiencies in various markets.
The Bank of Japan has been one of the most aggressive QE players. The conundrum is why the yen continues to appreciate when their government debt levels and monetary policy makes Japan one of the more likely countries to default on their government debt.
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