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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Capitalism: Problem, Solution, Or Both
Update: Capitalism should fix the discontent. Ocasio-Cortez speaks of capitalism as being irredeemable. While there is no better economic system in history, the wealth inequality could become a ticking you know what. Make no mistake, as the following shows, the far left is serious, almost fanatical, with it's own set of economists: talkmarkets.com/.../is-the-fusion-of-mmt-and-the-green-new-deal-creating-a-cult.
Is The Fusion Of MMT And The Green New Deal Creating A Cult?
Update: Ocasio-Cortez just said capitalism is irredeemable. The Democrats must end support for her if they want to continue as a party that can be taken seriously going forward. MMT economists including Kelton should run like hell from this congresswoman.
Ageing Perennials Set To Negate Central Bank Stimulus As Recession Approaches
Very interesting article and charts.
Fed: We Are Very Happy As Is, But There Is Maybe A Very Small, Microscopic Chance We’ve Missed Something
Helicopter money, not MMT, is the only solution.
The Big Minus Wasn’t Actually China’s Big Contraction In Exports
The world depends on China, and so does much of US capitalism.
This Interest Rate Cycle Seems To Be Over
It is amazing that the Fed thought it could normalize rates. I think it was more a case of desperation and fear of the negative rates that could come from a serious downturn. Europe appears to be in some trouble.
Japan: Old Style
Since inflation is not happening, Japan needs non sterilized helicopter money.
Navigating With The R Star
Interesting article. The Fed did not know what it was doing in 2007-2008, as inflation was still strong as recession took hold. NGDP was falling like a rock. Libor was inverted with the Swap rate. Those things took banks to the end of their rope. Does the Fed know what it is doing now? Who knows?
Trade Isn't China's Only Worry
I think Trump and tariffs have moved China more toward totalitarianism. Maybe it was inevitable. But who knows had the world economy been prospering instead of turning down thanks to ill fated Fed policy and Trump tariffs?
The Bank Of Canada Is Throwing In The Towel On Future Rate Hikes
I think it would be in the Canadian national interest to let Meng go. I think the Chinese response to her extradition would be significantly more hurtful than America's response if she is not extradited. China is the only means Canada has to diversify its economy away from total dependence on the USA. That door will close if she is extradited.