Even as I read about the stock market making new highs, I keep reading about more Americans on food stamps than ever before, more Americans quitting the workforce, old people who can’t get a decent income…business people who can’t start businesses…This is in Obama’s fifth year. Whom is Obama’s economic recovery for?…
Obama’s policies benefit the Big Government – Big Banking – Big Labor elites – in that order of seniority…[so] Why aren’t we all laughing in Obama supporters’ faces, when they pretend to stand for the People?…
Nothing has changed since May. Now a former Federal Reserve official, Andrew Huszar, explains – and apologizes:
Confessions of a Quantitative Easer
I can only say: I’m sorry, America…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.
As I’ve been saying for years! Except that, even more than a Wall Street bailout, QE is also a Big Government bailout. Whether the Fed buys Wall Street’s mortgage bonds, U.S. Treasury bonds, or anything else, the new money sooner or later funds the government’s spending and deficits, including Obama’s $6 trillion (and rising) of additional U.S. debt.
Although Huszar’s piece neglects the Big Government angle (focusing almost exclusively on the Wall Street angle), it gives some interesting color and is worth reading in full.
UPDATE: If you prefer wonky video, CNBC interviews Huszar here.