Federal Reserve Whistleblower Tells America The REAL Reason For Quantitative Easing

It would seem somebody that worked for the federal reserve couldn't help but have a conscience, and now he's looking to come clean.

A banker named Andrew Huszar that helped manage the Federal Reserve's quantitative easing program during 2009 and 2010 is publicly apologizing for what he has done. He says that quantitative easing has accomplished next to nothing for the average person on the street. Instead, he says that it has been "the greatest backdoor Wall Street bailout of all time." And of course the cold, hard economic numbers support what Huszar is saying.

The percentage of working age Americans with a job has not improved at all during the quantitative easing era, and median household income has actually steadily declined during that time frame. Meanwhile, U.S. stock prices have doubled overall, and the stock prices of the big Wall Street banks have tripled. So who benefits from quantitative easing? It doesn't take a genius to figure it out, and now Andrew Huszar is blowing the whistle on the whole thing.

This man's apology.

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.

I found this to be quite sickening when he was quoted as saying,

Having racked up hundreds of billions of dollars in opaque Fed subsidies, U.S. banks have seen their collective stock price triple since March 2009. The biggest ones have only become more of a cartel: 0.2% of them now control more than 70% of the U.S. bank assets.

and......

"This is fantastic for every rich person," he said Thursday, a day after the Fed's stunning decision to delay tightening its monetary policy. "This is the biggest redistribution of wealth from the middle class and the poor to the rich ever."

Of course most of us here at ATS already have a pretty good idea about all of this anyway, but it is nice to have someone come forward and say, "Yeah, I was there and this is really happening."

Another piece of this story that caught my attention was this,

U.S. stocks have risen 108% while Barack Obama has been in the White House. And who owns stocks? The wealthy do. In fact, 82 percent of all individually held stocks are owned by the wealthiest 5 percent of all Americans.

The whole system is corrupt and needs to be brought down. I honestly believe the greed that these people have will ultimately be their downfall.

Here is a link to the full story.

reply to post by solongandgoodnight


It's crap like this that'd have me marching with OWS.

SnF

naw, they need real stimulus
hit 'em where it hertz
mattress bank metal money and trade goods

and the next banker bailout
outta be from jail

reply to post by solongandgoodnight


S & F

You are right. We all knew this but the facade of helping the average American continues.

It is amazing how 90% of Americans (pulling it out of thin air) have no clue. Perhaps it is the same reason they own no wealth?

I can't wait for the day we hit the tipping point. I'd like to see these people tarred and feathered and hung from lamp posts. For the heads of these corrupt banks I feel the old practice of being drawn and quartered fits nicely. Take the heads and mount them on pikes at the Statue of Liberty as a warning to their kind to stay the F*ck away from the US. Barbaric punishments only suited for the barbarians who rape and pillage the classes below them.

ETA: Maybe throwing them all in a french style oubliette with no food or water and let them rape and pillage themselves until the last one starves out...I guess you can tell this type of thing makes me a bit angry...

This isn't a new revelation. In fact, this was discussed ad naseam at the time. They were bailing out international banks also. No one cared then....

It's was actually (IMO) one of the last steps of wealth transfer that was needed. It seems a little late to be concerned now. Something tells me they're not giving back the cookies they stole.

It's nice to see official confirmation of this, but to be honest it wasn't necessary. Anyone with a working brain can see that this was the case. When the economy reports record highs on the Stock Market while Main Street continues its spiral into ghost town, something is amiss.

Rosinitiate
This isn't a new revelation. In fact, this was discussed ad naseam at the time. They were bailing out international banks also. No one cared then....

It's was actually (IMO) one of the last steps of wealth transfer that was needed. It seems a little late to be concerned now. Something tells me they're not giving back the cookies they stole.

Indeed this is not a new revelation for many of us at ATS, but to the average joe this probably would be a new revelation. I need to start doing a better job of telling people about things like this so it might one day come to an end. Then again, most people are only concerned about getting off of work and getting drunk so it might not help.

By the way, that is the best avatar EVER.

beezzer
reply to post by solongandgoodnight

 

It's crap like this that'd have me marching with OWS.

SnF

Yeah, right up until OWS's answer was to put government in even more control of it all.

You see for yourself that government is neck deep in this. They aren't the answer, but OWS was stupid enough to think they are.

I'll say it again - OWS and TEA really started from the same impulse. We both know that something is very, very wrong, and we're all getting fleeced. Where we part ways is when OWS tries to think the answer if to give THEM more power. We just want to take it all away from THEM and tell them to leave us the HECK ALONE! Put them back in their cage.

reply to post by Danbones


TARP was bad from the start. We should have let it burn then.

Danbones
naw, they need real stimulus
hit 'em where it hertz
mattress bank metal money and trade goods

and the next banker bailout
outta be from jail

Yes and boycott the year ending "Junk Sale" and gift exchange commercialization of the winter solstice money grab event.

reply to post by Logarock


That won't be too hard with "affordable" healthcare starting to take up everyone's remaining disposable income

ketsuko

beezzer
reply to post by solongandgoodnight

 

It's crap like this that'd have me marching with OWS.

SnF

Yeah, right up until OWS's answer was to put government in even more control of it all.

You see for yourself that government is neck deep in this. They aren't the answer, but OWS was stupid enough to think they are.

I'll say it again - OWS and TEA really started from the same impulse. We both know that something is very, very wrong, and we're all getting fleeced. Where we part ways is when OWS tries to think the answer if to give THEM more power. We just want to take it all away from THEM and tell them to leave us the HECK ALONE! Put them back in their cage.

And there is the issue right there.

Government gives Wall Street a bailout.

OWS blames Wall Street
Tea Party blames government

Both (Wall Street and government) are at fault!

ABNARTY
reply to post by solongandgoodnight

 

S & F

You are right. We all knew this but the facade of helping the average American continues.

It is amazing how 90% of Americans (pulling it out of thin air) have no clue. Perhaps it is the same reason they own no wealth?

Well while publically bashing welfare types, privately they complain about the labor force, people that actually go to work and will work, as being a bunch of entitled to a fair wage minded dumbasses that don't understand how it all works.

I was explaining this to a friend two days ago. She commented on how low gas prices were. I told her it was not a good sign. With all the money that the Fed had been pumping out with QE programs, the resulting inflation should have caused gas prices to go up. Instead, what is happening is that the Fed is giving the money to the banks, but it never gets into circulation. The Dow sees record highs, but people on the street are worse off than before.

Future generations will get the bill for this.

Krazysh0t
It's nice to see official confirmation of this, but to be honest it wasn't necessary. Anyone with a working brain can see that this was the case. When the economy reports record highs on the Stock Market while Main Street continues its spiral into ghost town, something is amiss.

Well there's your reason why it was necessary, how many working brains do you run into on a day-to-day basis?

I only know of two, and they're both friends of mine b/c of it. lol.

OT.

This is SO obvious, when unemployment is soo high, and ppl have given up looking for work, and 47% of Americans are on some form of Fed Asst & AT THE SAME TIME the Dow is breaking record highs... come on.\

Let's face it, critical thinking is GONE, the MSM and the pundits will be more than happy to think FOR YOU,and if you disagree you're labelled a "kook".

Fine, so give me my sink & Indian so I can get out of this looney bin.

VictorVonDoom
I was explaining this to a friend two days ago. She commented on how low gas prices were. I told her it was not a good sign. With all the money that the Fed had been pumping out with QE programs, the resulting inflation should have caused gas prices to go up. Instead, what is happening is that the Fed is giving the money to the banks, but it never gets into circulation. The Dow sees record highs, but people on the street are worse off than before.

Future generations will get the bill for this.

That's the problem...
People who consider that gas prices are "low"...
Collusion, much?
After they went over $4/gallon, and people werent grabbing the pitchforks and torches while the Oil-igarchy reaped record profits...I knew we would never see it sustainably under $3/gallon ever again. Considering the US is in the top ten PRODUCING oil nations...but they sell that to other countries, how patriotic.

Apology not accepted...hopefully they all burn in hell.

I would advocate a move towards QEP where the government gives the money to the people, not the banks.

This happened in Japan, whereby every citizen was given a credit, and if it was not spent within a certain time-frame, the credit was withdrawn.

All the QE money goes directly into the economy.

reply to post by beezzer


People are basically binary. I see it here in ATS discussions all the time. People glom onto some really simple explanation for complex situations. It's the republicans' fault, democrats' fault, Obama's fault. God forbid it is the entire SYSTEM's fault. I guess it's more comforting and intellectually digestible to pare things down to one concept. And it's the majority's nature to think and act that way that allows things to continue BAU with a different wrapper.