Andrew Huszar: Confessions of a Quantitative Easer - WSJ.com: "In its almost 100-year history, the Fed had never bought one mortgage bond. Now my program was buying so many each day through active, unscripted trading that we constantly risked driving bond prices too high and crashing global confidence in key financial markets. We were working feverishly to preserve the impression that the Fed knew what it was doing.
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."
This is what has driven the meteoric rise in the stock market, the artificial rise in housing prices, the highest level of unemployment and food stamp usage in history. Look out below; cause here we come !!
It was apparent that sooner or later someone within the ranks would blow the whistle on the cabal because they either didn't get their fair share or because they had a crisis of conscience....not sure which happened to Andrew Huszar but be assured; this is the beginning of the crumble.
'via Blog this'
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