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
Tail Risks Reviews: China Is Number 1
China is growing. A trade war would just slow it. The US is barely growing. A trade war could tip the US into recession.
Emerging Market Contagion
Interesting article. Certainly emerging markets need to divert trade to other nations and away from the USA. If Trump wants to play hardball, these EMs need to play hardball.
Caterpillar: Growth Momentum And Low Valuation Will Allow For Compelling Total Returns
Cat could be increasing market share. But it must fear cyclical issues, business cycle and others.
Is Jerome Powell Just As Clueless To Market Risks Today As Ben Bernanke Was In 2007?
Powell is more concerned about bonds than about workers. He will sacrifice stocks too if necessary to keep demand for bonds up. JMO.
Wicksell’s Elegant Model
I would like to add that the Fed feels comfortable with an economy that is sub-optimal. I personally feel a sub-optimal economy could eventually destroy the working class without an injection of helicopter money. The Fed does not want a red hot productive economy as bonds are it's new gold.
Wicksell’s Elegant Model
Great article except that it can be hard to determine the natural rate. Much of the nation has slow house appreciation while red hot areas behave quite differently.
Trump’s Trade Deal With The EU Is Hardly A Breakthrough
Sounds like even Peter is sucked into the rational for a trade war with China. But really, this should cause economists bowing to populism to pause: www.talkmarkets.com/.../scott-sumner-destroys-financial-times-fear-of-china
Three Things I Think I Think – Shrinkage, Inflation & Trickle Down
Great article. However lots of loans are secured by collateral. Real estate loans are an example. They are not made out of thin air. Unsecured loans like credit cards have a Fiat feel about them.
These Stocks Will Survive The Growing Risk Of Economic Collapse
You could be rich or dead in this dreadful scenario.
China’s Coming Austrian Collapse
I argued that China's foreign debt is the tail wagging the dog, the banks. That is a shrewd move on the part of China, and will enable it to possibly devalue the currency just by virtue of letting its credit rating decline. Trump can't do anything about it if the Chinese choose to go that way. www.talkmarkets.com/.../scott-sumner-destroys-financial-times-fear-of-china