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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Donald Trump Was Elected By Farmers And They Are Worried
Of course. But they likely sponsored Trump and encouraged middle America, which was feeling forgotten, to vote against Democrats who they viewed as being a major reason for jobs leaving their regions.
Venezuela’s President Tackles Economic Crisis By Deleting 3 Zeros From Its Currency
Author says: "When oil prices sank, the Venezuelan government could have trimmed the budget and helped restructure its economy to make it more diversified and less oil-dependent."
The second idea in that sentence makes absolute sense. Diversification limits the impact of economic shocks most times. However, the first statement may have been a little to optimistic. Trimming the budget when economic activities slow makes no sense. If main street has less to work with, that is the time the government should spend more. When things are booming is when the budget should be reined in.
The Next Crisis Will Be The Last
Sobering look at the trend for main street.
Lockup Could Swing Switch Lower
There is Switch near where I live. Lot of money being spent on expansion of facilities.
‘The Message Is Clear’: Trump’s Amazon Obsession And Economic Authoritarianism
The cabal that Trump pretends to fight may want a weak America. Tightening power means taking it from Americans. Right and left wings of the cabal clearly want gun control and racial hatred, only it is divided up among the parties. Hitler was in charge of both wings of his little empire. Trump's goals are not yet spelled out.
Amazon Stock: What Might Donald Trump Actually Be Able To Do?
Not a fan of Amazon. But this, like a trade war could mean Trump could lose again, and this time take small business down with him.
Trump Throws Cold Water On Amazon Rebound, Says Postal Service Is Bezos 'Delivery Boy'
I am no fan of Amazon. Bezos shows no mercy towards his employees. JMO. But, efficiency started with big box stores. They are victims of their own success.
Tesla Crash Sinks Stock: Shorts Rejoice, Bulls See Opportunity
Tesla is highly speculative. It is a buying opportunity for speculators, only.
New Research Foretells QE Domination
This article is a must read. Certainly bond yields go down because of demand for bonds in the private sector. The Fed did nothing to change the conundrum. But giant QE could pull yields into the negative. The ECB and BOJ own most of the bonds in those regions. That can't be healthy for economies in the long run. The alternative of runaway yields is worse.
The FOMC Asks Our Indulgence In A Leap Of Faith
The Fed errs away from inflation in the New Normal, it seems, prof.