Disliked{quote} Very well said. I just want to add something. What if the level of lending of money that the bank offer was the right level. Prior to the crisis they made too much loan. If the government agencies compare today's banking lending level to pre-crisis, its normal that the bank lend lessIgnored
You are correct that housing bubble was created partly by unregulated loans basically given to anyone who asked because they turned around sold to next bank and domino effect continued to bloom.Some countries like Iceland purchased so much of it that it totally devastated their financial sector.
This is different.Huszar resigned from Feds because he saw how much Feds easing was being used other then its intended purpose.
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It wasn't long before my old doubts resurfaced. Despite the Fed's rhetoric, my program wasn't helping to make credit any more accessible for the average American. The banks were only issuing fewer and fewer loans. More insidiously, whatever credit they were extending wasn't getting much cheaper. QE may have been driving down the wholesale cost for banks to make loans, but Wall Street was pocketing most of the extra cash.
From the trenches, several other Fed managers also began voicing the concern that QE wasn't working as planned. Our warnings fell on deaf ears. In the past, Fed leaders—even if they ultimately erred—would have worried obsessively about the costs versus the benefits of any major initiative. Now the only obsession seemed to be with the newest survey of financial-market expectations or the latest in-person feedback from Wall Street's leading bankers and hedge-fund managers. Sorry, U.S. taxpayer."
Read his confessional piece
Andrew Huszar: Confessions of a Quantitative Easer
In trading, you have to be defensive and aggressive at the same time
