Business Insider Writes: Fed Official Who Helped Orchestrate QE: ‘I’m Sorry, America,’ QE Really Was A Huge Wall Street Bailout

 

Andrew Huszar, a former Federal Reserve employee who executed QE, has written a Wall Street Journal op-ed apologizing for the “unprecedented shopping spree.”

Huszar worked at the Fed for seven years before leaving for Wall Street. The central bank recruited him back in 2009 to manage “what  was at the heart of QE’s bond-buying spree–a wild attempt to buy $1.25 trillion in mortgage bonds in 12 months.”

“I can only say: I’m sorry, America,” Huszar writes. From the Journal:

It wasn’t long before my old doubts resurfaced. Despite the Fed’s rhetoric, my program wasn’t helping to make credit any more accessible for the average American. The banks were only issuing fewer and fewer loans. More insidiously, whatever credit they were extending wasn’t getting much cheaper. QE may have been driving down the wholesale cost for banks to make loans, but Wall Street was pocketing most of the extra cash.

Now the only obsession seemed to be with the newest survey of financial-market expectations or the latest in-person feedback from Wall Street’s leading bankers and hedge-fund managers. Sorry, U.S. taxpayer.

Huszar argues that QE, while “dutifully compensating for the rest of Washington’s dysfunction,” has become Wall Street’s new “too big to fail.”

There you go everyone. In this stunning admission Mr. Huszar clearly confirms everything that I have been talking about on this blog. Basically, the FED’s are destroying the US Economy at the expense of the middle class and for the benefit of the wealthy, the banks and the Wall Street.

I know what you are thinking.  At the initial glance the strategy seems to be working. After all, the economy “seems” to be doing fine and while the unemployment is still relatively high, it is getting better. The stock market is hitting all time highs and the future looks bright.  However, such a positive view is highly distorted.  It is equivalent to smoking crack and claiming that you feel great.  Certainly you would, but only for a short while. Should you continue the behavior you will eventually die.  

The US Economy and its entire financial system is in the same situation. Things seem fine,  but that’s just a temporary illusion. As my timing work indicates, the economy and our financial markets will begin to have deadly seizures in early 2014. 

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