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
Turkey's Economy Is A House Of Cards - Consumer Debt Crisis Emerges
What a perfect specimen for helicopter money. At some point consumer credit faulters.
Powell’s Hawk Loses Its Lift Even Before Oil
It may not be the real unemployment rate, but Wilbur Ross says businesses are having issues hiring. Are they lying? Is it a massive conspiracy? I believe in lots of conspiracies but this one is hard to peg.
Early Signs That Canada Is About To Enter Recessionary Times
It likely doesn't help that the US housing market is cooling.
Trump Blinked, The Fed Blinked And The Powell Put
Turns out, Trump didn't get 40 percent Chinese tariffs on American cars halted. Larry Kudlow said as much. Lying, making up rules that are not required by international law, and offending every leader in the world are traits of the Tariff Guy.
India’s GDP Growth Slows Down
Still strong growth considering the Obstacle in Chief and his impact on the world economy as well as Fed behavior.
China Auto Tariff Mystery Over: Kudlow Denies Trump Tweet
Donald Trump is a serial liar. Americans need to wake up to this reality.
Trump Blinked, The Fed Blinked And The Powell Put
But he got little in the way of solid concessions. He did get a reprieve on 40 percent car tariffs. But none of this matters if China refuses to budge on intellectual property in exchange for doing business in China. And really, China is doing nothing illegal in that realm. The US must let go or say goodbye to billions of Asian customers. Steel tariffs have to go too.
A Trade War Truce Won’t Fix China
So, the west is doing better? I think not.
Pausing At The Fed
The Derivatives market may make this common sense approach difficult. The Fed doesn't want to scare the derivatives folks who scarf up the long bonds, so it likes a gradual rise in rates knowing the long bonds rates won't change much.
Trump Blinked, The Fed Blinked And The Powell Put
Now, the interest rate derivatives are a little safer, but there are other financial securities that are risky, and are lurking. Add to all this that debt was set up based on growth, and Trump has stopped world growth. Then add to this that the cold war crowd wants to shoot America in the foot to keep Asia from prospering, and we have a more dangerous world than in the 60s.