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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Despite Six Years, Triple Dip Recession
Banks are weak.
US Inflation Heads Higher, When Will Rates?
Capacity utilization is creeping up towards 80, which was the average for much our national history. The question is, when will it cause serious wage inflation to be a threat. It may push up against recessionary pressures before that time.
When Money Is No Longer Artificially Money
Interesting rant. Worth the read. Of course, Dec 2018 only shows manufacuring productivity growth. We still don't know what total non farm productivity growth is. There are some coming out to work who stopped looking in the low growth years of 2014 and 2015. But wage growth for this mini recovery are historically low, except for durable goods. This is still the New Normal, Peter.
Surge In Auto Loan Delinquencies: Auto Loans In High Gear
Low wages and low productivity growth make these easy money delinquencies expected. If Fed economists are surprised they prove Jeffrey P Snider's position that the Fed has no clue about this economy.
The Dog Ate My Eurozone Recovery
The US is navigating the dangerous waters of a global trade war with aplomb? Seriously? Only if a deal that is half way meaningful comes out soon, with no other tariffs on Europe, etc. Otherwise, the stock market will not feel aplomb.
ZIRP At 20; The ZLB Is A Trap, But Not The One Central Bankers Think It Is
Since it is considered dirty to just pump money in without offsetting sterilization in Japan, nothing happened, no inflation at all.
US Farm Belt Bankruptcies Climb, Canada The Beneficiary Of Trump's Trade Policy
From Mish: Trump's trade policies have been an unmitigated disaster.
And: The US has trillion dollar deficits as far as the eye can see, and recession hasn't even hit. Unfortunately, the most likely way the trade deficit drops is via an import demand collapse in the next recession.
Trump's deal will be like the deal he made with Korea. It won't be a win for America. It won't bring business to our shores, except on the edges. Maybe some high end production. Wages are too high here in comparison to China. That can't be changed by any deal.
Charts That Matter- Tuesday, Feb. 12
Interesting charts. That a larger trade deficit would help the US stock market is why China is still important to the world economy. Trump wants a deal to save the stock market. But he also wants China to do his will. He cannot have both!!!
The Waymo Tesla Self Driving Con
Update: If you order food from a self driving robot and it kills someone, will you be liable?
Meng's Arrest Vs. The Rule Of Law
Update 8: Even into 2019, reports show Apple iPhones still declining in China as the Chinese rally around Huawei.