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
This “Looney” Market Is Looking Over The Edge Of A Cliff… Just Before It Falls
If you are of the school that bond prices cannot fall, that they cannot afford to let them fall that much, then stocks will go and bonds will be in more demand. Other than that this is a very interesting article.
The Weaponization Of The Dollar
Nothing about weaponizing the dollar on CNBC. Must mean it can't be true. Or maybe that it must be true.
How US Trade War Is Spreading From Goods To Services
Trump doesn't care about high end services as exports. He only cares about making America great again by producing and selling trinkets abroad. The stock market is just too sanguine about this.
‘Con’ Job: World’s Second-Largest Car-Parts Maker Drives Off A Cliff
The auto industry is still being hurt by tariffs that are not even applied yet. Just the threat of tariffs is enough in many cases. And if autos from Europe to China slow it is Europes fault for not fusing with China over the Trump tariff threat. They need to cooperate to avoid Trump running over everybody else.
Next Wave Of Housing Demand...Renters
I think it has been discredited to say that the Community Reinvestment Act pushed the housing bubble. This chart clearly shows that your explanation is not accurate at all. The CRA clearly was in play, but before 2005 that all changed and the private money pools and the big banks took over: www.exam...lesofglobalization.com/.../...hart.html
Greece Emerges From Bailouts
The Eurozone ruined Greece.
Extreme Home Prices, Not A Mortgage Bubble
It only takes a few major states to rain on the national parade of housing health.
The Conspicuous Consistency Of Curves
The only thing I disagree with is that I believe the central banks know exactly what they are doing. They don't want the conundrum to end. Too much collateral at stake.
The Secular Stagnation Of Keynesian Economics
This article is troublesome. First, the Fed was too slow in lowering interest rates as nominal GDP was falling, not too fast. I live in Las Vegas. Projects that were dead in the water came back to life and were completed. They are now viable businesses that add to the GDP of Las Vegas. If the author cannot get this right how are we to trust his analysis about tariffs? Yes, growth is below trend. But the alternative is being 6 feet under.
In Next Crisis, Gold Won’t Drop Like 2008
That printed money will not bleed into the economy anymore than the 3.5 trillion did in the Great Recession. So, no, Gold will not go up unless the Fed abandons its very strict principles. I would not bet that the Fed will abandon its principles.