Thursday, December 12, 2013

So Sorry...But Not THAT Sorry

Trey Smith


I've been catching up on my reading and I came across a November op/ed in the Wall Street Journal, Confessions of a Quantitative Easer, in which a former member of the Fed admits that quantitative easing is what some of us always thought it was: a humungous backdoor bailout of some of the wealthiest banks in the world! As is my wont, that's not what caught my eye.

Before returning to the Fed to lead the program, the author writes,
I had left the Fed out of frustration, having witnessed the institution deferring more and more to Wall Street. Independence is at the heart of any central bank's credibility, and I had come to believe that the Fed's independence was eroding.
Yes, he was soo frustrated with Wall Street's power that, when he left the Fed the first time, where did he go? To Wall Street, of course! He then returned to the Fed, before going back to Wall Street again. The proverbial revolving door!

It is hard to believe that he is troubled by the relationship between the Fed and Wall Street because he bounces back and forth between the two of them. Seems to me that his "apology" is lacking sincerity.

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