Muckraker of the Financial System

The Fed knew about the housing bubble before it burst but lied and said they didn't: Bill HR 1424 to buy bad paper (eventually called TARP) was introduced in March 9, 2007, before there began to be bad commercial paper from private subprime RE loans, in August.

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ALL CONTRIBUTIONS

E Skinny Deal: Whose World View Is Currently Winning?
Bannon and Cramer populism vs. Ron Paul; meddling in Hong Kong.
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E The Derivatives Monster Creates A Bull From Capital, Not Labor
Siphoning off capital takes place as interest rates generally decline, and it is a dangerous game.
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E Why Did The Fed Turn Dovish? Not Just Trump
One could almost say that keeping business cycles going is a sign of economic weakness! The Fed fears the pain of a downturn on the banks and counterparties. Barely over 40 percent of all derivatives trade through clearinghouses.
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E Trump Economic Plan Revealed: What Should The Fed Do?
Trump's plan implies American capital would flood out from the US into China bonds, driving yields down. Theoretically that would drive the Yuan up with hot money. With China losing money on US bonds that go negative, that is certainly is risky.
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E The Poverty Of US Interest Rates
Poverty in the financial system can be measured by interest paid on treasury bonds.
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E While Global Warming Warriors Freak Out, China Coal Offers Prosperity
If the Great Depression was an energy crisis, the world has to hope deep down that China's coal plants multiply like rabbits as a slowdown in the world economy nears.
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Comments

Latest Comments
MMT Heaven And MMT Hell For Chinese Investment And U.S. Fiscal Spending
6 hours ago

I agree, but I don't understand what he means by pure debt free money creation unless he is talking about the Fed expanding its balance sheet which would not add to the national debt. But that is more like helicopter money than MMT.

Goldman Loses Its Grip
1 day ago

People aren't keen for Goldman going into retail. Years of bad pr and bad press matters.

In this article: GS
Optimism On China Trade & Brexit Drives Markets
1 day ago

Bloomberg reported that China wants existing tariff rollbacks before ChIna will buy 50 billion in US crops. Trump is being toyed with. He brought it on himself. We can only hope that China will drive POTUS crazy. Time for someone to be prez who realizes that China is bigger than we are. Supposedly he know this, according to Michael Pillsbury who spoke about PPP on Fox biz. But does he realize he is not going to beat China?

Skinny Deal: Whose World View Is Currently Winning?
1 day ago

Update: Oops. Bloomberg reports that China will only buy the massive 50 billion in farm products if Trump rolls back more tariffs. China is playing with Trump, and frankly he deserves it.

The Trade War That Never Stops
2 days ago

This article pins down the problem with Trumponomics.

Is Steve Bannon Doing China A Big Favor?
2 days ago

Update 9: The Skinny Deal with China may allow more compromise with China in the future. It all depends if Trump sides with Bannon or with pragmatism. You can be sure that China will still move towards greater national independence even if the tariff wars are completely resolved. Trump has hurt the United States' position with China. It may be difficult to measure that damage going forward.

'We Have Lift-Off': Yields Lead The Charge Higher; Load Up On Equities, Exit Gold Longs, And Sell US Dollars
3 days ago

Great answer. But there were massive pur hases of treasuries as yields declined. Those are often used as collateral. The counterparty margin losses could be massive if rates rise too quickly, but I cannot give a time frame regarding how much time would elapse or how fast the rise in rates would be before it is a danger.

In this article: SPX, BITCOMP, ETH-X, UGAZ
'We Have Lift-Off': Yields Lead The Charge Higher; Load Up On Equities, Exit Gold Longs, And Sell US Dollars
3 days ago

Hey Robert. Two things. First, I don't get the connection between rising reserves and funding costs because we are told that excess reserves cannot be loaned out. I suppose the interest on excess reserves can be. But Jamie Dimon warned in another period of time where interest on reserves were in place, that a fast rise in rates could hurt the banking system. What if treasuries, the collateral of choice in derivatives markets, lose too much value too quickly?

In this article: SPX, BITCOMP, ETH-X, UGAZ
'We Have Lift-Off': Yields Lead The Charge Higher; Load Up On Equities, Exit Gold Longs, And Sell US Dollars
3 days ago

It depends on how fast long yields rise. Collateral issues connected with fast rising yields could cause market selloffs to meet margin calls.

In this article: SPX, BITCOMP, ETH-X, UGAZ
It's All About The December Tariffs Now: "These Negotiations Look Much More Difficult Than Phase 1"
3 days ago

Only sustained compromise will keep this trade defusion going.

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PERSONAL BLOG

Latest Posts
UJET Interview With CEO Anand Janefalkar
UJET has cutting edge technology that allows the use of a smartphone app to make the interaction between the customer (caller) and the call center to be much more user friendly.
Socially Responsible Investing As Alex Jones Is Banned
Social investing practitioners would generally be in favor of banning someone who exhibits racial or ethnic hatred against whole groups of people. It is good to look at Facebook and at Google and compare the two with regard to social concerns.
Hitler Economics In The Age Of Trump
There is a case to be made for sovereignty and mutual respect of sovereign nations, but just not in the way that Trump has made it. There is a benign sovereignty and a belligerent and hostile sovereignty. Is POTUS very dangerous or Hitler-lite?
Peter G. Peterson Turned Entitlement Into A Bad Word
Peter G. Peterson was a philanthropist for the wealthy, a reverse Robin Hood
The Cult Of Tesla's Elon Musk
I focus here on Elon Musk, because he is likely the the most powerful cult leader in America, other than perhaps Donald Trump. Elon Musk seems to be able to make outrageous statements and still retain his followers.
Trump Administration's Strange Response To Ford Relocating To China
Trump Embraces Ford Focus production in China when it railed against them being produced in Mexico. Why is this?
It Is Getting Serious With POTUS: Deep State Versus Russia Connection
It appears that Steve Bannon is now courting favor of the White House. I wrote about how radical he is as he has espoused a libertarian economic agenda on steroids.
The Curse Of Trump Is In Cutting Back On The Poor
The United States is a prosperous nation. But attacking the poor is not the way to remain prosperous. It has been tried before with disastrous results.

Work Experience

Blogger
Examples of Globalization Blog
2010 - Present (9 years 11 months)

On my blog I discuss the past housing bubble, the crash and future housing bubbles and scams. Offering easy money loans should be against the law but is not. Selling bogus AAA rated bonds should have been prosecuted but the scheme came from the bankers at Basel 2. You can't go higher than that. http://www.examplesofglobalization.com

Education

University of California, Santa Barbara
1967 / 1970
Political Science & Government

Publications