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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Spending Must Be Paid For - But When?
The Republicans hurt America by forcing austerity on Obama. Now, the party may be too late in the cycle to have the desired effect.
Inspector Clouseau Is Looking For Clues
The Fed is tight down on mainstreet, more than in the financialized economy.Mainstree is more like an emerging market. What isn't tight for Wall Street is tight for mainstreet.
Inflection Point: Chinese Mfg PMI Jumps Back Into Expansion After 5 Months In Contraction
China is no longer worried about the trade war and the USA is weaker than the Chinese originally thought.
US Banks Are Worried And Are Tightening Credit
Timely article!
Jobless Claims Fall - Recession Not Close
I think Canada is nearing recession with low unemployment.
Recession Lurks. What Will The Fed Do?
Update 2: Moore and Kudlow call for a half point rate cut. This means things are really getting bad, that a trade deal is stuck, or something happening not revealed. If the Fed cut i/2 point they would be admitting they really don't know what they are doing. Thats unlikely. It may have a positive effect on the economy. Not sure about stocks!
Aversion To Yield Inversion
Fed leaders like Bullard and Williams are saying rate cuts are not necessary. That should at least be a red flag to the small investor, imo.
After Today's Brexit Debacle, The EU Expects Either No-Deal Or Long-Delay
Thoughtful article. Brexit is certainly a complex power struggle within the UK and without.
Recession Lurks. What Will The Fed Do?
Update: The Fed is behaving like I expected. John Williams and James Bullard are calling rate cuts premature. They are looking for a second quarter pick up. For those who believed that the Fed would reverse course quickly in the face of warnings, it is unlikely. The Fed would have to admit the December error, and that leopard cannot change its spots, if indeed it was a crucial mistake.
Jim Cramer Slides To Dark Side On China Tariffs
Update 4: US officials are encouraged by Chinese comments about intellectual property. But remember, win or lose, this trade war will continue. Free trade is off the table. China is looking to diversify away from the USA, as other world leaders grow mistrustful of Trump and USA tariff madness. World cooperation will ultimately limit US prosperity on mainstreet, although like Japan, US stocks could benefit. Jmo.