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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This Was The Year Bond Yields Were Suppose To Take Off
Yes, William. Good post. Besides the reasons given by the author, there is still a massive demand for bonds, as well. Measuring demand of increased collateral needs is hard to do, but the concept of long treasuries being the new gold has not been disproven.
Setting Up For More ‘Residual Seasonality’ Not Inflation
Everybody worries about a potentially tight labor market just around the corner. It may come, but we could have a recession instead.
Rationing Rational Rationalizations
If the only thing that matters is GDP, (NGDP which is growth plus inflation), then the question is how fast is it slowing? It will almost surely slow without a tariff deal. The US thinks it can win without a deal. Investors are telling us that is not true.
Stocks Tumble After Navarro Says "Agreement With China Difficult" Unless Beijing Does Full Trade Overhaul
It isn't stealing to require firms doing business in China to share their technology. They can always go home. Navarro needs to worry about the price of his house in SoCal since the Chinese have stopped buying.
This Was The Year Bond Yields Were Suppose To Take Off
Eventually, labor share of GDP becomes so low that it comes back to bite the wealthy.
Jerome ‘Dead Eye’ Powell
This is a very thought provoking article, Gary T. Racist Trump stimulated too late in the cycle while racist McConnell was determined to destroy Obama and limited stimulation early in the cycle. Republican incompetence all the way around.
Obama gets blamed but the fault lies squarely at the feet of the Republicans who don't give a rats behind about American prosperity. They only care about themselves and the power they can accumulate.
Dealer Behavior Leads Us To Another Big (Collateral) Warning
Powell is testing the counterparties. And the system put into place to regulate them.
This Was The Year Bond Yields Were Suppose To Take Off
Prof, this article nails it. So many deflationary shocks, so little time.
A Deep Dive Into The Latest FOMC Day
Fascinating article. We know the Fed was too tight leading up to the Great Recession, a decade ago. It clearly is trying for a softer landing this time. Pushing the stock market down a little is likely preferable to what happened in the Great Recession. We are back to the exact same things to look for as back then, possible credit unavailability due to speculation failures and NGDP measurements. Inflation is not as important as those two. In the Great Depression, inflation rolled on for months while NGDP was cratering.
FOMC Preview: Desperate RHINOs (Again)
I think the Fed is lying about wanting growth. Former St Louis Fed VP, Stephen Williamson, said basically that the Fed was happy with slow growth.