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
Did The Failure Of Orthodox Economics Contribute To Trump’s Win?
I agree with almost everything about this article except that the #HousingBubble and crash was only in 4 states, primarily, and yet, the #Fed took down the entire #subprime and commercial paper market making it depression-like. Also, the new gold of structured finance, bonds, are being hoarded like no tomorrow. That hurt mainstreet by crushing yield.
Will Trump Raise Interest Rates – Is It Even Possible ?
If insurers and pension funds hold debt to maturity, they would still get par, and maybe they would buy more bonds at a cheaper price. You are right about government, however. Still, it looks like Steve Bannon wants the opposite of what the MSM is pushing, as he wants negative interest rates: www.talkmarkets.com/.../bannonomics-not-trumponomics-will-crush-the-economy
Wealth Destruction Of 90% Is Next
Very interesting article. One wonders if Steve Bannon would take the economy down, then push the mother of all stimulus packages for one last big US infrastructure blowout since Trumponomics won't do what Bannonomics wants to do. www.talkmarkets.com/.../bannonomics-not-trumponomics-will-crush-the-economy
Bannonomics, Not Trumponomics Will Crush The Economy
I agree, Moon. The cycle ends when it ends. But Trump may be between a rock, Trumponomics and a hard place, Bannonomics.
You’re Gonna Pay How Much? Valuation Extremes Are No Longer ‘Justified’ By Ultra-Low Rates
I just don't know where he is going to find all these extra workers. Maybe people who have given up will come back into the work force. But is that enough to turn it around as he jettison's working illegals?
Thomas Friedman: Automation Is Killing Jobs
I am just wondering how Trump will get workers for these factories plus for shovel ready government jobs when we are near full employment? He may have to fast track the undocumented! The most inexpensive way to get factories is to require the Chinese to put a few extra factories here every quarter.
The Trump Paradox: If The Fed Flubs Its Job, Good News Could Turn Out To Be Bad News
Yes, China is beginning to put factories into the US. Stopping this with a trade war would be a disaster: www.talkmarkets.com/.../trumponomics-increase-exports-slow-imports-bludgeon-the-new-normal
Edward Lambert On Bond Demand, The Coming Recession, And New Normal
I think you are right. Many people, George, seem to be interested in the next big innovation that would pull us out of our malaise, but if anything, some of our innovations will doom labor. We need innovations that do not doom the labor force.
US Bond Market Liquidity Collapses: "It's Worse Than Brexit"
This will ultimately just increase the scarcity of collateral as it is being kept from the market along with all the rehypothecation that keeps it from the market anyway. I can see yields trending down based on this information.
Trump's "America First" Energy Plan Means... Canada
So trade barriers to oil will raise the price of oil. Be prepared to pay more at the pump. Then we will see how the people who voted for Donald Trump like him. Oil probably should trade a little higher, but I think Trump remembers the embargo of '74, and wants to crush OPEC. But clearly our investment banks pushed oil up even father than OPEC desired. Perhaps Donald should crush the Vampire Squids. That would be reckless, IMO, but justice and prosperity don't always go hand in hand.