I’m not kidding. The guy who was in charge of a big part of the Fed’s quantitative easing efforts in 2009, Andrew Huzar, explains that all the money printing, the exploding of the Fed’s balance sheet, all the central bank sleight of hand has hurt this country, and the world.
We are in bad shape folks. The Fed has trapped itself and now even normally Fed friendly people are acknowledging it publicly. Last night as I was reading another article on our current economic situation I found myself wondering if Larry Summers actually bowed out because things were so grim it overwhelmed his lust for power. (Probably not though.)
Warning bells are sounding.
(From The Wall Street Journal)
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…
…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.