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Hilarious Video Explaining QE2

By Dan Dzombak – Updated Apr 6, 2017 at 10:22AM EST

In case you missed it, there's a funny video going around criticizing QE2:

Please enable JavaScript to view this video.

Since QE2 was announced, Treasury bond yields have risen by about a quarter of a percentage point, causing bond prices to fall. While that doesn't sound like much, it is causing large moves in Treasury bond ETFs. Since Nov. 2, the day before the announcement, iShares Barclays 20+ Year Treasury Bond ETF (NYSE: TLT) has fallen 4.8% and Vanguard Extended Duration Treasury Index ETF (NYSE: EDV) has fallen 8.3%. Taking the reverse trade, ProShares UltraShort 20+ Year Treasury ETF (NYSE: TBT) rose 9.7%. Financial stocks as represented by Financial Select SPDR (NYSE: XLF) were immediately up following the announcement but have since come back down.

What do you think of QE2? Let us know in the comment box below.

More QE2 Foolishness:

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About the Author

Dan Dzombak
Dan Dzombak joined the Motley Fool through its Analyst Development Program in 2008. After completing the 1-year program, he became the Motley Fool's Energy Editor, focusing on the oil and natural gas markets. At the same time, he followed the development of the online investing space. In late 2011, he started work as the Motley Fool’s Online Financial Services Analyst, following the online investing space and new disruptions emerging from the Financial Technology (FinTech) scene. At the end of 2012 he chose to work independently as an investor, writer, and entrepreneur.
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X@DanDzombak

Stocks Mentioned

iShares Trust - iShares 20+ Year Treasury Bond ETF Stock Quote
iShares Trust - iShares 20+ Year Treasury Bond ETF
NASDAQ: TLT
$87.14
(-1.29%)-$1.14
Select Sector SPDR Trust - State Street Financial Select Sector SPDR ETF Stock Quote
Select Sector SPDR Trust - State Street Financial Select Sector SPDR ETF
NYSEMKT: XLF
$49.64
(-0.84%)-$0.42
ProShares Trust - ProShares UltraShort 20+ Year Treasury Stock Quote
ProShares Trust - ProShares UltraShort 20+ Year Treasury
NYSEMKT: TBT
$34.84
(+2.77%)+$0.94
Vanguard World Fund - Vanguard Extended Duration Treasury ETF Stock Quote
Vanguard World Fund - Vanguard Extended Duration Treasury ETF
NYSEMKT: EDV
$65.37
(-2.05%)-$1.37

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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