In the aftermath of the Fed’s decision to taper another $10 billion, 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 will collapse if the Fed continues on the current course, and he also stated that what the Fed is doing is “quite shocking” and it may very well end in disaster. Below is what Huszard had to say in this remarkable interview.
Eric King: “Andrew, you are a former Federal Reserve executive and you were called upon to execute QE1. You also set up the Fed’s massive trading room. When you see the Fed cut another $10 billion of QE and you look at where we’ve been and where we are headed, what are your thoughts?”
Huszar: “When I look back to 2008, I never thought we would be where we are today. I thought QE was an emergency program to stabilize markets. But I never thought we would see more than $5 trillion of bond purchases at this point, or a Fed balance sheet that’s at $4.4 trillion, compared to $800 billion pre-financial crisis. So this is really uncharted territory that I find quite shocking....