Reserve's System Open Market Accoun, i.e. he ran the daily POMO which was the basis of QE1 through QE3.
While Sack was replaced as head of the infamous Markets group in Jun 2012, replaced by the current head, academic Simon Potter, it was Sack whose daily interventions in the bond market and periodic "communications" with a certain group inside Citadel, set the groundwork for the biggest, and most artificial market rally in history. It to think it only cost the Federal Reserve $4.5 trillion to preserve the illusion of the "Wealth effect"...
Reason - Blast - Name - Top - Mind
Anyway, the reason we bring up this "blast from the past" name, is because in its latest Top of Mind periodical, (p)reviewing the Fed's balance sheet unwind, Goldman's Allison Nathan has conducted an extensive interview with none other than the man who made price discovery, efficient markets, and basically capitalism, a thing of the past.
Millionaire Warns Americans: “Get Out Of Cash Now”
System - Wall - Street - Journal - Investors
Something strange is going on in the financial system. And according to The Wall Street Journal, it’s causing some investors to move massive amounts of money out of the banking system.
So what does Brian have to say? Well, a lot of thing (see below), but the punchline is his answer when asked if the Fed will buy other assets besides bonds, i.e., stocks, ETFs and the like:
Q - Sense - Fed - Range - Assets
Q. Would it make sense for the Fed to purchase a broader range of assets in the event of a future downturn, as Fed Chair Janet Yellen suggested in a speech last year?
Purchases of Treasuries and agency-backed securities—the primary assets that Congress has so far authorized the Fed to buy—have the advantage of allowing the Fed to affect the market price of interest rate risk without taking on any credit risk. Purchasing a wider set of assets—as do some other central banks—might enable...
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"It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift