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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A Hypothesis For Prof. Krugman: The Transmission Method Was Fear
I am sure that was part of it. But not all of it. Clearly, paying interest on excess reserves meant that banks did not feel the need to extend lending past pristine credit. And, it was always against the law to loan to people who cannot pay it back, but there were penalties against lenders who did so. That is peeling away, as Trump wants a bigger everything bubble.
Is Tesla Counting On A Billion Dollar Regulatory Credit Bonanza?
Apparently tax credits are bad law. Maybe even a scam.
The Neatest Idea Ever For Reducing The Fed’s Balance Sheet
Other nations report reserves and yet the Fed does not control the money supply by upping reserve requirements. So in our system, what are excess reserves anyway. They are the opposite of required reserves, right? And also, aren't they a base money? Different from deposited. And they are offset by bonds whereas Brains would not be. Just trying to understand the current Fed issues. One more question. Banks issue deposits through lending. So said the BOE. So reserves are not needed, right. What is the mechanism by which they hamper lending if banks create broad money by lending?
Is Tesla Counting On A Billion Dollar Regulatory Credit Bonanza?
Explosive article.
The Bullish Case
If things are so sanguine, why is Trump holding off on the full 25 percent tariff on the 200 billion until after the holiday season?
How Bad Will The Trade War Get?
If a product costs 100 dollars and has a 10 dollar tariff, then if the markup is an optimistic 100 percent, the retail price goes from 200 dollars to 220 dollars. Doing that on thousands of products will be felt. Companies eating the cost could hollow out stocks. The issue though is more, the lost business from a growing China. That is likely difficult to calculate but it will likely be in the hundreds of billions of dollars lost. All because China and the USA have no trust left. It is just stupid. Relying on Goldman Sachs is like relying on your worst enemy. JMO.
Gold: A New Trade War Weapon?
This is a very interesting article, regardless of what people think of gold as an investment.
Trump’s Backdoor Power Play To Rein In The Fed
Donald Trump didn't have to bust the budget and the Fed will make him pay. Like always, the Fed will make him pay too soon, most likely. Neither have the long term interest of the population as central to their behaviors.
Here Comes The AI Tidal Wave
People in Arizona are tired of Waymo cars getting in the way of their commutes. We need to get real about AI. Overblown.
Musk Under DoJ Fraud Investigation
It is amazing how many continue to believe in what appears to be a con artist.