Black Friday, 2008: The Fed started pumping billions of dollars into financial markets. The benefits, however, failed to reach Main Street, instead being guzzled by Wall Street, ex-Fed exec Andrew Huszar exclusively told RT. Huszar, at the time the Federal Reserve official responsible for the first round of the bond-buying experiment, later publicly apologized for “the greatest backdoor Wall Street bailout of all time… the benefits of QE have gone to the big banks,” and not to ordinary people. “Fifty percent of Americans don’t own one stock, so how is it trickling down?” Huszar said in an interview to RT’s Marina Portnaya. Quantitative easing (QE), or easy money, is the Central Banks unorthodox monetary program to bail out the financial sector by buying long-term government debt and lowering interest rates. The plan sought to alleviate the pain of the crisis succeeded in saving the financial markets, but the easy money didn’t reach ordinary people. And relying on the easy money has prevented the banks from making larger structural reforms, Huszar said. “We were bailing out the banks on some level, but the real structural reforms that may have helped the average American weren’t happening, Huszar told RT.
Posted on: Fri, 29 Nov 2013 14:23:14 +0000
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