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. I have published on two other ...
more 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. I have published on two other prominent financial websites, Seekingalpha.com (as Gary A) and at Businessinsider.com. I muckrake the banking system and found premeditated causes for the housing bubble and subsequent meltdown. I am married with 4 grown children.
Specialties: Impacts of politics on the economy, interpreting economists, writing about the negative impact of some aspects of globalization and pros and cons of the new normal. I don't like tariff wars. Email bgamall at gmail
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Payrolls Like GDP: Headlines Good, Underneath Really, Really Not
The Fed continues to be obsessed with wages and has pruned wages in the past. If the Fed really wanted more robust wage growth and economic growth, it would've lowered rates rates.
Dangerous Stock Markets
The Fed is obsessed with wage inflation even when there is no real inflation. The obsession hurts consumers. There is no euphoria on mainstreet, only in the stock market.
What Bulls And Bears Are Saying As BYND’s IPO Goes “Beyond” Parabolic
Beyond Meat is sort of Vegan. It is a high salt product in the Fast Food space. It should not improve the high salt bad reputation of the fast food industry.
Is The Fed Wrong In Caring About Wages, Not Inflation?
Update 1: Clearly the Fed is obsessed with pruning wages. I believe the Fed is more obsessed with pruning wages than it is in targeting inflation or NGDP targeting! See this for more proof of this Fed obsession: Fed's Andolfatto, Powell, and the Secret Goal of the Fed: talkmarkets.com/.../feds-andolfatto-powell-and-the-secret-goal-of-the-fed
Inching Toward NGDP Targeting
The Fed is ignoring inflation dropping. So, it is not targeting inflation. Can't say it is right to target wages now, things are slowing. But good article if the Fed would look at nominal GDP as zero rates move close.
Income Inequality And The Decline Of The Middle Class In Two Charts
The lowest rung got a bigger raise than the middle class, true. Bit saying it pays to be in the lower rung is a crazy stretch of that observation. No, that does not "pay" versus the middle class.
When Inflation Does Not Go Your Way
The Fed is acting as if has already dropped inflation targeting. The Fed is ignoring a lot of recessionary news while focusing on jobs.
Here’s What Will Cause The Next Recession
Well, rarely. But since fiat money multiple tightenIngs could happen more often.
Here’s What Will Cause The Next Recession
Cool article. Reversal of the wealth affect happened also in 2007, when the commercial paper market that buoyed the subprime market cratered. Then also in 2008, both the heloc market curbs and interest on excess reserves were implemented. So, it was one thing after another.All these tightenings were ignored by the Fed in that no offset was provided, and the tightenings were actually implemented or welcomed by the Fed.
The Climate Change Story Is Half True
Energy is used by the nation that makes stuff, China. It is the driver of the world economy. Must read article.