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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The Greatest Financial Mismatches In History
Entertaining article. Silly putty and a dreamy prom make one a bad stock picker.
Taxes Were Never Really Cut, And The Economy Is Suffering For It
Great article. Author says: "Every Treasury bond purchased on the open market represents a U.S. corporate bond that isn’t purchased."
So much bond buying is for collateral these days. Corporate bonds force the buyers to take a haircut to face value when those bonds are put up as collateral. Interesting that these are the guys who influence the government to cough up more treasuries precisely so they don't have to buy as many corporate bonds.
Universal Basic Income To The Rescue?
Keynes supported the working class and viewed effective demand as being essential to a properly functioning economy. Capitalists have limited this prosperity, using other schools of economics. The blame cannot be placed on Keynes.
ZTE Back From The Dead After Trump Reverses Sanctions
Trump found out trade wars abuse US companies too! But he cannot seem to stop himself except in extreme circumstances.
US Treasury Shorts Hit Record High As Foreign Banks Dump Bonds
So the vigilantes are foreign banks, forcing the Fed to tighten.
What Does History Say About Mideast Turmoil, Crude And Inflation?
At least higher oil prices, a tax on many Americans, could increase volatility.
Thoughts On Bank Debt
Banks give floating rates betting that rates will stay low, with a little squeeze upward in order to fleece the loan recipients.
US Dollar Drops After Bearish Evening Star: Are USD Bulls Done?
Interesting article. About the UK, the BOE always tries countercyclical efforts, and doesn't wait til things break like the Fed does. UK citizens are protected and were protected in the Great Recession by a bank, the BOE, that was very quick to supply credit when the Fed did not. It is almost as if the UK citizen is favored over the US citizen in the central banking world.
The Ceaseless Ascent
What could go wrong?
Emerging Market Time Bomb: "Dollar Is Our Currency But Your Problem"
If hot money can unleash a US housing bubble on the center country, that hot money could care less about the welfare of the rest of the world. However, Mish, while you are not keen on rising prices, you are not a full blown Austrian economist either.