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
BofA Credit Analyst Loses It: "Central Banks Created A Fantasy Land"
I am confused now. Clearly the cycle included liquidation in the Great Recession. The cycle included liquidation in the Great Depression, too: www.talkmarkets.com/.../fed-great-depression-and-great-recession-liquidations-go-unexplained
So, the fact that the Fed may not want a cycle of recession is now bad? Well, I can see that it is bad compared to a broad prosperity. But compared to liquidation, it is not bad.
Goldman Finds That China's Debt Is Far Greater Than Anyone Thought
So, what is the problem? Aren't we at 90+ percent?
What Happens When The Fed Hikes During An Earnings Recession
Maybe the Fed could raise rates and employ Helicopter Money. Now is the time. Real Helicopter money, Tyler: www.talkmarkets.com/.../responsibly-expand-the-monetary-base-before-it-is-too-late
Will Yellen Step In To Stem Dollar’s Tumble As June Hike Vanishes?
She apparently is all talk. Truth is, Will Rogers once said during the Great Depression, that the inability to raise rates by a percentage point means banks are on thin ice. I think he was right.
Bondholders Stunned As Puerto Rico Finds $4.4 Billion In Bonds "Unconstitutional"
Hey, I am for Puerto Rico. We can't treat them like Greece or maybe they will leave the Amerozone. :) Let PR be a lesson to you Mexico, don't merge with the US and Canada unless you want eternal economic grief.
China Says ‘Thank You’
So, this helping of China will have interesting implications for Japan.
Here’s Why Tesla Is A Giant Ponzi Scheme
I saw a guy driving his Tesla into a Porsche dealer. Wise decision. Tesla drivers could be left out in the cold.
Jobs Report Lays Bare Liberal Failures
So, I am not necessarily against supply side economics, except when it is forced by hot money, outside capital flows. So, Reagan's supply side did pretty well, but Bush's supply side destroyed the middle class. And you can't say bankers or the Fed were held accountable for mispricing of risk and subsequent tightening of lending and of the money supply that followed. Somebody should be in jail.
Central Banks Waited Too Long To Normalize Rates
I agree, but the Fed has forces of its own and other forces that result in low rates for long bonds. One such force is the demand for long bonds as collateral in the derivatives markets. That demand is huge, causing the long rates to stay low. I don't see how that can be fixed as long as long bonds are permitted to be used in this way.
What Is The Worst Case Scenario For Bonds?
So, someone, somewhere, is betting on Taylor Swift. Lol. As far as bonds go, certainly safer than the stock market. Lots of demand for long bonds. Don't see that ending, do you, Cullen? Also, buying bonds with negative yields clips the profits from rising prices like never before. That must be for guys who don't care if they lose a little as long as they get their billions back.