On Monday,
former Fed official Andrew Huszar publicly
apologized to the American public for his seminal role in executing
the Quantitative Easing (QE) program, a program he characterizes as “the
greatest backdoor Wall Street bailout of all time,” and “the largest
financial-markets intervention by any government in world history.” While this
is a momentous admission from an insider (Mr. Huszar is also a former Wall
Street banker), perhaps Mr. Huszar’s most revealing statement concerned the
results of QE’s “relentlessly pumping money into the financial markets during
the past five years.” He referred to the spectacular rally in financial markets
and expressed agreement with the growing belief among expert observers that
market conditions had become “bubble-like.”
In a paper
just released by the American
Enterprise Institute, another former policymaker, resident fellow
Desmond Lachman, formerly deputy director of the International Monetary Fund’s
Policy Development and Review Department, warns that QE and other “unorthodox
monetary policies” are having “unintended consequences.” Among other
consequences, Lachman sees signs of incipient bubbles forming throughout the
world:....To Read More.....
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