Former Fed Quantitative Easer Confesses; Apologizes: "I Can Only Say: I'm Sorry, Amer

[Geaux4it]

By Andrew Huszar, also posted at the WSJ. Mr. Huszar, a senior fellow at Rutgers Business School, is a former Morgan Stanley managing director. In 2009-10, he managed the Federal Reserve's $1.25 trillion agency mortgage-backed security purchase program.

Confessions of a Quantitative Easer

We went on a bond-buying spree that was supposed to help Main Street. Instead, it was a feast for Wall Street.

I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.

Five years ago this month, on Black Friday, the Fed launched an unprecedented shopping spree. By that point in the financial crisis, Congress had already passed legislation, the Troubled Asset Relief Program, to halt the U.S. banking system's free fall. Beyond Wall Street, though, the economic pain was still soaring. In the last three months of 2008 alone, almost two million Americans would lose their jobs.

As for the rest of America, good luck. Because QE was relentlessly pumping money into the financial markets during the past five years, it killed the urgency for Washington to confront a real crisis: that of a structurally unsound U.S. economy. Yes, those financial markets have rallied spectacularly, breathing much-needed life back into 401(k)s, but for how long? Experts like Larry Fink at the BlackRock investment firm are suggesting that conditions are again "bubble-like." Meanwhile, the country remains overly dependent on Wall Street to drive economic growth.

Read more here: Former Fed Quantitative Easer Confesses; Apologizes: "I Can Only Say: I'm Sorry, America" | Zero Hedge

 

[zeke]

And the very people that benefited from this policy have been making a killing in earnings. And you lovers of the wealthy on here will defend them to the death if anyone suggests that they be taxed at a much higher rate on these windfall earnings.

Why do you want to bitch about the way they made their millions but defend them from further taxation?

 

[Geaux4it]

And the very people that benefited from this policy have been making a killing in earnings. And you lovers of the wealthy on here will defend them to the death if anyone suggests that they be taxed at a much higher rate on these windfall earnings.

Why do you want to bitch about the way they made their millions but defend them from further taxation?

You should take that up with Obama.. He is lining Wall Streets pockets, not his Main Street.

BTW- IMO, they already pay their fair share. Let's keep taxes low so jobs can be created to pay taxes


-Geaux

 

[zeke]

And the very people that benefited from this policy have been making a killing in earnings. And you lovers of the wealthy on here will defend them to the death if anyone suggests that they be taxed at a much higher rate on these windfall earnings.

Why do you want to bitch about the way they made their millions but defend them from further taxation?

You should take that up with Obama.. He is lining Wall Streets pockets, not his Main Street.

BTW- IMO, they already pay their fair share. Let's keep taxes low so jobs can be created to pay taxes


-Geaux

Why Obama? Every time increasing taxes is even mentioned in Congress, what happens?

You tell me. What is the position of the Republican party on increasing taxes on the very very wealthy.

Come on you should know this shit. Ar at least you like to pretend.

What is the Republican parties position on raising taxes on the ultra wealthy?

 

[zeke]

And the very people that benefited from this policy have been making a killing in earnings. And you lovers of the wealthy on here will defend them to the death if anyone suggests that they be taxed at a much higher rate on these windfall earnings.

Why do you want to bitch about the way they made their millions but defend them from further taxation?

You should take that up with Obama.. He is lining Wall Streets pockets, not his Main Street.

BTW- IMO, they already pay their fair share. Let's keep taxes low so jobs can be created to pay taxes


-Geaux

You must think you are on fantasy island. How many years have those taxes been low? How much increase in earnings and wealth have the ultra wealthy enjoyed?

And where are those fucking jobs?

 

[Geaux4it]

And the very people that benefited from this policy have been making a killing in earnings. And you lovers of the wealthy on here will defend them to the death if anyone suggests that they be taxed at a much higher rate on these windfall earnings.

Why do you want to bitch about the way they made their millions but defend them from further taxation?

You should take that up with Obama.. He is lining Wall Streets pockets, not his Main Street.

BTW- IMO, they already pay their fair share. Let's keep taxes low so jobs can be created to pay taxes


-Geaux

Why Obama? Every time increasing taxes is even mentioned in Congress, what happens?

You tell me. What is the position of the Republican party on increasing taxes on the very very wealthy.

Come on you should know this shit. Ar at least you like to pretend.

What is the Republican parties position on raising taxes on the ultra wealthy?

You're missing the point. The FED is responding to Obama's agenda and weak economy, Blame him for making Wall Street more wealthy, not the lack of revenue

As for taxes, I already stated my case in the previous post, did you not read it? For the sake of clarity I will repeat. The rich already pay the majority of taxes. I feel they are taxed at a fair rate. To increase revenue you do not bite the hand that feeds you, you instead create tax incentives which creates jobs and in turn, increases the revenue base.

BTW- I'm not a Republican

-Geaux

 

[zeke]

You should take that up with Obama.. He is lining Wall Streets pockets, not his Main Street.

BTW- IMO, they already pay their fair share. Let's keep taxes low so jobs can be created to pay taxes


-Geaux

Why Obama? Every time increasing taxes is even mentioned in Congress, what happens?

You tell me. What is the position of the Republican party on increasing taxes on the very very wealthy.

Come on you should know this shit. Ar at least you like to pretend.

What is the Republican parties position on raising taxes on the ultra wealthy?

You're missing the point. The FED is responding to Obama's agenda and weak economy, Blame him for making Wall Street more wealthy, not the lack of revenue

As for taxes, I already stated my case in the previous post, did you not read it? For the sake of clarity I will repeat. The rich already pay the majority of taxes. I feel they are taxed at a fair rate. To increase revenue you do not bite the hand that feeds you, you instead create tax incentives which creates jobs and in turn, increases the revenue base.

BTW- I'm not a Republican

-Geaux

But you are unemployed. Right? Me, I gotta go to work.

 

[editec]

I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.

He didn't know that BEFORE the FED started doing it?!

How did he imagine that this money would get into the greater economy?

 

[007]

And the fact of the matter is, at some point QE will stop. The $80 BILLION a month FEAST will be over, then you'll see a bubble burst the likes of which will make all others look like a cake walk. It could very well topple the WORLD economy, since so many others are dependent on our's. And this isn't IF, this is WHEN.

This is Bernanke propping up obama, period.

End QE before the 11/2014 elections and see what happens.

 

[Amelia]

Thanks for posting this, Geaux.

 

[Toro]

Hooray for money printing!

 

[boedicca]

Here's another way to understand it:

[ame=http://www.youtube.com/watch?v=PTUY16CkS-k].[/ame]

 

[CrusaderFrank]

We need to eliminate the Federal Reserve and the GSEs

 

[Geaux4it]

Thanks for posting this, Geaux.

Yea, I like to post information and let the board determine how it applies. In this case, Americans are starting to understand that QE, like Obamacare, is a frigging disaster. It has no positive ending. Everyone thought it was such a smart thing to do... Doesn't appear so smart at all.

-Geaux

 

[Erand7899]

And the very people that benefited from this policy have been making a killing in earnings. And you lovers of the wealthy on here will defend them to the death if anyone suggests that they be taxed at a much higher rate on these windfall earnings.

Why do you want to bitch about the way they made their millions but defend them from further taxation?

Why try to lay the blame on those who took advantage of the policy, and not those who created and ran the policy? When the Fed starts throwing hundred dollar bills into the street, you will be one of those whose man concern is getting the names of those who pick up the bills.

Just about everyone with a stock portfolio and/or a 401k, made money off of the idiotic left wing attempt to alter economic reality by throwing hundreds of billions of dollars into the economic engine.

 

[Geaux4it]

And the very people that benefited from this policy have been making a killing in earnings. And you lovers of the wealthy on here will defend them to the death if anyone suggests that they be taxed at a much higher rate on these windfall earnings.

Why do you want to bitch about the way they made their millions but defend them from further taxation?

Why try to lay the blame on those who took advantage of the policy, and not those who created and ran the policy? When the Fed starts throwing hundred dollar bills into the street, you will be one of those whose man concern is getting the names of those who pick up the bills.

Just about everyone with a stock portfolio and/or a 401k, made money off of the idiotic left wing attempt to alter economic reality by throwing hundreds of billions of dollars into the economic engine.

While I'm not one of them, some at work have 25% gains so far this year in their 401K.

-Geaux

 

[OriginalShroom]

Every since the QE plans were announced, I predicted that Dow would rise and the left would claim credit for fixing the market, even though what they were actually doing was having a patient with a broken leg being pumped full of pain pills so that they couldn't feel the pain and proclaiming they healed him when all they did was just mask the pain.

When those pain pills finally run out, the real pain will begin.

If you think the past few years has been tough, wait until the Fed stops pumping $85 Billion a month into Wall Street and the Stock Market.

That's when the real pain will begin.