While conservative criticism of the Federal Reserve and its ongoing bond-buying scheme is nothing new, the latest opponent of such practices was once responsible for implementing them.
In a recent Wall Street Journal opinion article, Andrew Huszar repudiates the program known as quantitative easing. Hired to oversee the process of buying huge blocks of mortgage bonds when Q.E. began several years ago, few people have a better grasp on the subject than Huszar.
Claiming the process amounted to “the greatest backdoor Wall Street bailout of all time,” he apologized to America for his role in the scheme. The former official described leaving the Federal Reserve when he determined its actions were hopelessly intertwined with the best interest of Wall Street investors.
When the first round of Q.E. began in 2008, he explained the objective was merely to prevent a large-scale implosion on Wall Street. Since then, additional rounds have been implemented with the expressed intent of propping up the economy as a whole.
In that regard, Huszar said the Fed failed miserably.
Using investment firm reports to bolster his claim, he explained the Fed has racked up almost $4 trillion in purchases over the past several years with nothing to show for it.
Current Fed Chair Ben Bernanke naturally continues to defend the practice, though even he admits it is difficult to pinpoint any real benefit Q.E. has had on the American economy.
At best, many view quantitative easing as just a stopgap measure that only delays the inevitable. For those who support the artificial economic booster, the impending crash might be postponed long enough to deny responsibility.
The rest of us, however, are forced to live with the consequences.
–B. Christopher Agee
Have an idea for a story? Email us at firstname.lastname@example.org