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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Debts, Bastiat And Modern Economics
Interesting article. The price effect only neutralizes extra money if extra money is injected continually. I wrote about it here: www.talkmarkets.com/.../fiat-money-helicopter-drops-zuckerberg-and-the-big-myth
About velocity of money. You just proved that it helps clear up debt. And yet, you seem to be against increasing the velocity!
About devastation as an economic help, as Lindsey Buckingham has sung, crime is just good business. The Coalinga Earthquake, which I experienced, was just good business. Of course, the human suffering is not measured nor the increased debt that ensued.
RBC: "Something Is Wrong Here: Indicators Are Flashing An Imminent Yield Breakdown Warning"
You can't have enough bonds in this crazy, derivatives based, world. Happy Holiday!
Investigating Trends In Median Home Prices: When Did Price Acceleration Start?
LA has always been a magnet.Good weather, good jobs. And space issues. If you compare LA with other cities before going off the gold standard it was still high in many areas.
Tech Investing Now As Inescapable As Trump
That increase in earnings must be coming from offshore as GDP was bad.
Why Bad Economic Theories Remain Popular
My parents lived through the Great Depression. They believed Will Rogers was a great man, who had a very dim view of the Republicans and that FDR was a man who saved many on mainstreet from dire consequences. Any Austrian who thinks a credit crisis can be easily solved like the Depression of 1921 which was not a credit crisis, is drinking too much from the Mises trough.
Housing’s Weak Start For Q2 Is Probably Noise
Yeah, people go to work and immediately buy a house. Not! They have to be at their jobs a year, before the lending institution will count that job. I am always amazed when housing uses new employment as a leading indicator.
China’s Lehman Moment Is Coming
China does not sign Basel Accords, so the cooking can continue.
"This Is Probably Just The Beginning" - Chinese Banks Are In Big Trouble
That is similar to what happened with LIBOR in the USA when it rose and crossed the fixed swap line and destroyed the interest rate derivatives positions of the banks. However, this corporate is only one part of lending in China and the Durden chart does not show if the Chinese LIBOR is affecting derivatives there. If the central bank is smart, they can recover faster than we did because Bernanke liquidated the economy and applied mark to market. China does not sign Basel accords so that probably won't happen there. It will be interesting to watch going forward: www.talkmarkets.com/.../china-could-be-the-next-basel-victim-or-not
The Great Reset: How Should We Then Invest?
Ending debt is something impossible to do, in the age of derivatives, IMO.
Does The World End In Fire Or Ice? Thoughts On Japan And The Inflation/Deflation Debate
This makes sense. Deflationary pressures are more of a threat than inflationary ones. In Japan, the boom that now exists needs more workers. The Japanese culture can offer no more workers. That is deflationary as time goes on.