Man Who Executed QE1 For Fed Says Stocks May Collapse 30%
February 21, 2014
In the aftermath of the recent chaos and market turmoil in emerging markets, today King World News spoke with the man the Fed called on to execute QE1 and who also set up the Fed’s massive trading room, former Fed member and former Managing Director at Morgan Stanley, Andrew Huszar. What he had to say will stun KWN readers around the world. He warned stocks may collapse 30% or more in a matter of months if the Fed continues on the current course, and he also said that the Fed is now running the largest hedge fund in the world and it may end in disaster. Below is what Huszard had to say in Part I of this remarkable interview.
Eric King: “Andrew, what made you come out publicly and say that QE was a failure and apologize to everybody? What made you come out and do that?”
Huszar: “I left the Fed in 2011. … I maintain great respect for a lot of the people inside (the Fed), and so I struggled for a long time to come out and speak publicly about it. But in the end I spoke out because I believe that QE, while initially well-intentioned, has really allowed the US to kick the can down the road with respect to major structural reform that has to do with its economy.
I think the financial crisis should have been a pretty significant wake-up call for the country, and yet five years after the peak of the financial crisis I think our economy looks pretty similar to where it was (after the 2008/2009 collapse), most importantly with respect to a banking sector, which has only become more concentrated and larger….