Phil Cannella – Phillip Cannella News
Phil Cannella: “We have none other than the quarterback
of quantitative easing, QE 1, and his name is Professor Andrew Huszar. Andrew, thank you so much for being on the show.”
Andrew Huszar: “Thank you for having me on.”
Phil Cannella: “You’re Welcome. Now I understand you managed, for The Federal Reserve Bank of New York, the $1.25 Trillion mortgage-backed securities purchase programs. Tell us a little more about these mortgage-backed securities.”
Andrew Huszar: “OK, so Quantitative easing… I think we have to go back a little bit and just realize where we were in the economy when it started. We were in the 4th quarter of 2008. Lehman Brothers had just gone belly-up and the U.S. economy was in a free fall. We had 2% GDP contraction just in those last three months of 2008 alone. You had two million Americans losing their jobs and so basically, what we’d seen was that Wall Street was on fire, and it was no longer meaningfully extending credit out to the average American, and that was really having some knockdown effects on the economy. So The Fed, having done what it had done already, which was a lot of emergency programs to help Wall Street, as well as bringing interest rates as low as it could in the traditional sense, decided to do this new program called quantitative easing, which effectively was a massive program of buying bonds in the financial markets with the idea of doing two things. One was the idea of trying to stabilize Wall Street banks. Taking a lot of the credit that was already on Wall Street bank’s balance sheets and putting it on The Fed’s balance sheet so as to give them more capacity to lend. That was the first goal. The second goal was hopefully, if Wall Street was stabilized, that credit would get out to the average American.”
Phil Cannella: “So what was your specific function at The Fed?”
Andrew Huszar: “I started in April 2009 to run the desk that was effectively buying bonds, and they were different types of bonds The Fed was buying, but my program was the centerpiece program of QE1, so to speak; the first wave. And basically our job was to buy $1.25 trillion of mortgage bonds. Basically, bonds that had packaged together mortgages of everyday Americans and we were basically buying those and investing in those for The Fed.”
Hear more from the interview with Phil Cannella and Andrew Huszar on The Crash Proof Retirement Show®. Saturdays at 11am and Sundays at 1pm on Talk Radio 1210AM, WPHT!
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Phil Cannella – Champion of Consumer Advocacy
With the uncertainty and volatility of the market, Phil Cannella, with First Senior Financial Group, prides himself on ensuring a safe retirement future for senior consumers. With an unparalleled devotion to educating seniors, Phil Cannella works endlessly to know and understand the ever changing tax laws and economic changes that can adversely affect one’s nest egg. Thousands of senior citizens have gone through First Senior Financial Group’s education process and learned how to have up to an 85% tax free retirement income.
As if that isn’t reason enough to respect Phil Cannella, the truly amazing thing about how he runs First Senior Financial Group is that he never takes a dime from the seniors who come to him to be educated. Everything he teaches and everything he offers comes free of charge. That is the true mark of a consumer advocate, someone who cares enough to help you without asking for anything in return.
http://www.philcannellaiii.com/