Written by John Lounsbury
How does QE money get used to buy stocks? Learn how the world equity markets function and who/what is in control in an interview discussion with GEI contributor Lee Adler on an episode of the Max Keiser report entitled “Bonfire of Misallocated Capital” (RT).
According to the discussion, the allocation of capital is in the hands of 22 large primary dealer banks and they determine how money is used when transferred by the Fed when assets are purchased. A bonus is thrown in with a very simple explanation of what is called “carry trade”. Watch the entire 25 minute show below (Lee Adler enters at 13:00) or click on the YouTube link under Source.
Source: YouTube (starts at 13 minutes)
