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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Latest Comments
SOFR Replaces LIBOR
Doesn't Libor measure stress in the system? I read concerns that SOFU will not perform that function.
High-Powered Money (100 Years Of Stability)
So true. If the MMT folks think excess reserves are increasing the money supply they are deluded. As Jeffrey P Snider has said, excess bankreserves are sterilized dead money, exchanged for bonds. Of course the MMT people promise to back off when they see inflation. Question is, how much inflation do they have to see before they back off?
Wages Continued To Improve Through January
I think average, instead of median, in most of these charts, is misleading.
Central Planning Is More Than Just Friction
Two things. First, you spoke about hoarding, but not about bond hoarding. Second, you mentioned the dollar and gold as money, but if you ask a clearinghouse, bonds are the real money. They are the collateral. So, there is a stability there. I am not saying it is a good system, but after MBSs blew up, interest treasuries became the collateral of choice and we entered the new normal.
QT Is Not The Opposite Of QE
I think it is more than weak growth and low inflation. Add to those the use of bonds as collateral like never before, and hoarding by Europe, and we see that the new normal means low bond yields and hoarding of bonds. It does not matter, QE or QT, there has been a relentless decline in bond yields over time since 1985. Bonds are the new gold. It will be hoarded and they will not act like people think they should act.
Tax Luxury, Not Wealth Or Income
This is such a good idea, Scott. Hard to track, maybe. Maybe people could cheat. But most wealthy people would probably be ok with it. Thanks.
Ben Bernanke Killed The World Economy
#Trump's productivity growth is hardly normal. France has much larger productivity growth than the US. France! Trump is stuck in low productivity just like #Obama was. talkmarkets.com/.../trickle-down-didnt-work-for-trump-bush-and-hoover-heres-why
MMT And Its Fictional Discipline
Helicopter money would be far safer and easier than MMT.
A Balanced Budget
Austerity from time to time could help, but continual austerity like we see in Europe is a total failure.
Retail Sales Growth Disappoints In December 2018
This must be what winning looks like. Or not.