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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Jim Grant On The Bond Bear Market, Jerome Powell And Much More
Interesting article. But he didn't speak to the new normal at all.
Japanese Bubble Bursting Playbook
I think he is speaking of cities built, that stay empty for some time. That uses a lot of resources and as they are scaled back, commodities are scaled back.
Margin Debt And The Market - Friday, March 9
Margin debt looks ominous. If something else shakes the markets this debt could become a magnifier of fear.
Global Asset Allocation Update: Tariffs Don’t Warrant A Change…Yet
This is an interesting and well written article. The question remains, will the massive shorting of long bonds strike fear in that market? The Fed has to be jealous of those bonds. Stock investors should watch the hawkish Fed, like a hawk.
Imaginary Wage-Inflation Conundrum
Keynes said weak labor share of GDP was not good. He would have agreed with you, Mish.
Why Is The US Economy Becoming More Stable?
Also, Cullen,that GDP growth chart you show is ominously pointing down to the right. The Fed seems unable to level it out, which would show real stability.
The Everything Bubble - Waiting For The Pin
Pushing up stocks will allow the insiders to escape quickly and support treasury bonds just in time to swallow up the coming large inventory.
Why Is The US Economy Becoming More Stable?
It is a trade off. But middle America still has dying villages. They voted for a populist POTUS. He could destabilize things with tariffs in a desperate attempt to help all those who live away from the coasts. The New Normal is hated, although with the power of financialization over our lives, breaking it would be a disaster.
The World Is Not Enough
Clearly, the big 5 have a certain swagger, like the AI that drives new tech, and self driving cars, etc. I think there is a lot of capital. But is it all worth it? How much do you need to spend to eliminate one driver in a truck? Something is wrong with capitalism these days.
Japanese Bubble Bursting Playbook
Interesting article. Japan is a small nation, though. China is much larger in area, which could mean that commodities would behave differently for China. That is not a serious analysis, just a personal opinion.