RealEconTV

Business news without the bullshit

Why quantitative easing doesn't work

Great for banks - and nobody else

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How it distorts the marketplace

The real estate game...

Venture funds take loans at super loan rates to buy houses for cash at low, low prices.

Then they rent them out and show a fantastic rate of return.

Now they want to package these portfolios and sell them to investors - and get out at the top.

What happens when rates go up? Big problems and there's only one solution: writing down lots of loans. Another case for deflation.