Why QT Causes Stocks to Drop Explained

<p>Many people accept that quantitative easing, (easy monetary conditions, low interest rates, printing money) causes asset prices to go up. On the same note, they just accept that quantitative tightening and raising interest rates causes asset prices like stocks to fall. But what is the mechanism behind this? In this video I am going to explain the process very simply, how QT contributes to lower stock prices.</p>