EagleTribune.com, North Andover, MA

Opinion

November 16, 2013

Your view: Letters to the editor

(Continued)

Mr. Huszar of course is referring to the Fed’s Quantitative Easing (QE) program. Along with the taxpayer backed bailouts of bankrupt entities, now called “too big to fail” financial institutions, the Fed wanted to further backstop these entities by taking their bad debts off their books. What this program really should be called is theft. What QE and the bailout does is transfer your money to these financial institutions with a government gun in your face, while at the same time telling you how good it is for the American people.

Remember, these institutions were broke, thanks to a variety of reasons, one of which was the destruction of Glass-Steagall, which would have limited the amount of leverage banks could use. With Glass-Steagall no longer a barrier from engaging in risky behavior, there was no reason to stop their ridiculous behavior. To make matters worse post-bailout, an ex-Congress member from Pennsylvania by the name of Paul Kanjorski decided it would be a good idea to change the accounting rules, by changing “mark-to-market” via Financial Accounting Standards 157. Now institutions and corporations could have massive write-downs by marking their assets under Level 3 “Unobservable Assets” to whatever they choose. Which is exactly what they all did, and of course Congressman Kanjorski was handsomely rewarded through campaign donations from the securities and insurance sectors, like many other members of Congress friendly to Wall Street currently enjoy.

The larceny eventually comes out of Americans’ purchasing power. Even while the government deficit continues to decline, the Fed continues at their $1.2 trillion a year QE pace. Credit of this magnitude can never of course replace real economic output, but of course our government is pretending it can with disastrous current and future effects.

It is now clear the Fed “intervention” isn’t serving the needs of the people, but is enabled through a crony Congress establishment, serving the needs of their true masters on Wall Street. By supporting any Congress member that has enabled or supported this larceny upon us, you are in fact enabling your own financial hanging, maybe not today or tomorrow, but when all that credit runs its course and it’s time to pay up, only then will the people realize what they have done to themselves in support of these criminals.

Duncan Burns

Bradford

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