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
Has Brexit Boosted The British Economy?
True that Katy. But in theory, having one's own currency is better than being stuck with the Euro according to economists who have measured growth in and out of the Eurozone.
Do Bond Prices Have Momentum?
The essence of capitalism is the control of wages. I don't see the Fed changing that approach, Carol.
Bubble Talk
Well, how many years ago? In 2007, the Saudis warned the US government that the bankers themselves were speculating and pushing crude up, to past $140 per barrel. This was revealed by Wikileaks and McClatchy. Surely that couldn't happen again! or could it?
Has Brexit Boosted The British Economy?
Brexit could also be helpful in a downturn. Having the pound sterling is important. Growth outside the Euro currency bounces back from downturns more quickly. However, if Brexit is used to cut social benefits, then perhaps the more conservative party should not have been the correct party to implement it.
Do Bond Prices Have Momentum?
Great article. Will tantrums and tantrum mongers ever go away? Apparently not. Also, with demand for bonds increasing due to use of bonds as collateral, there is even more reason to believe that bonds won't always even behave rationally as we think they should. Finally, weakness of labor will impact inflation negatively. Asset inflation is actually an attack on labor, and the Fed has nothing better to do than tamp down wages. Until that behavior stops, it is hard to see real secular inflation and secular bond price decline.
US Dollar Importance Is Fake News
High oil prices along with other commodity increases coupled with small wage growth can slow the economy to recession. But this is an interesting article, and the author has a point, as long as there is moderation in swings of the dollar.
The Cult Of Tesla's Elon Musk
Thank you, Barry.
Inflation Tsunami Ahead
If 2.66 yield should be 7 percent, the reason it isn't 7 percent is because of massive long bond demand. So, predicting a rise in long bond yields appears to be a fool's errand. Inflation only comes when wages go up. The Fed has been determined to keep a lid on wages. It can't afford inflation.
Dear Mr President, My Suggestion For Infrastructure Spending
It would be nice if wall money went for infrastructure.
Will The Stock Market Ever Decline Again?
Businesses had plenty of cash prior to the tax cuts and failed to invest other than to buy back stock. Why will it be any different going forward?