Wednesday, November 13, 2013

Fed Admits Stimulus a Bust

"I can only say: I'm sorry, America," he wrote. "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."

Huszar told "Fast Money" that the bond-buying program, which was supposed to increase credit availability to consumers and businesses, didn't do so.

"There was actually a net decrease in mortgage lending," he said. "In fact, until 2012 mortgage lending was at a 15-year low."



"Let's be honest, 50 percent of Americans don't own stock," he said. "There's a certain amount of trickle-down monetary policy involved here. And there's a real question as to whether that works compared to the huge costs that the program has."
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"By virtue of reflating the markets, we've potentially taken the emphasis out of breaking up what is ultimately a banking cartel in the United States," he said, adding that "0.2 percent of banks control 70 percent of assets in this country."

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