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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This Could Easily Become The Worst Urban Crisis In History: China
Well, China won't be subject to Basel rules. Lending will probably continue in a way it did not in the USA after the crash.
Welcome To The Deflationary Century
Machines replacing people is another reason we need to foster the shadow economy or GDP will decline even farther.
New Nothingness: Central Banks Are Powerless “They Should Go Away” Steen Jakobsen
He is being nice. Central banks blow bubbles and take down economies, in liquidation.
Foreign Central Banks Jettisoning US Debt At Alarming Pace; Buying Gold
But Peter, yields continue to go down. Let them sell. Pretty soon we will have negative rates and sky high values on price. Bonds are in massive demand as collateral. Gold may also be needed for collateral in the massive derivatives markets the way things are going. But gold price may or may not be affected by that demand.
A Flatter Treasury Curve… And Slower Growth?
But excess bond demand is also driving long yields down. It does not necessarily mean recession. It could also mean that there are not enough bonds for collateral these days.
Delta Force
Consider that artificial demand for long bonds as collateral is part of the Fed's policy and plan, the Greenspan plan.
Delta Force
From the article a fascinating conclusion:
Economists blame this decade’s reduced productivity on a lack of investment, which they say has led to an unprecedented decline in capital intensity. That is why those same economists want to keep interest rates low so that, in theory, businesses will be inclined to invest. However, there are those of us who believe that the artificially low rates put in place by central bank monetary policy actually cause reduced investment, and here’s why. Rather than encouraging businesses to compete by investing in productive assets and trying to take market share, excessive central bank stimulus encourages businesses to buy their competition and consolidate – which typically results in a reduction in the labor force. When the Federal Reserve makes it cheaper to buy your competition than to compete and cheaper to buy back your shares than to invest in new productivity, is it any wonder that productivity drops?
Why The Bitcoin Price Is Surging In Spite Of The "Obits"
The Technology may prove to be more important than the bitcoin. Yet the technology has good and bad potential applications: www.talkmarkets.com/.../pros-and-cons-of-blockchain-digitalization-of-dollars
"One Big Worldwide Bubble": Cusp Of 30-Year Bear Market In Stocks And Bonds
We have a bull market in bonds while having a bull market in stocks. If stocks crash the bull market in bonds will get more bullish IMO.
China Hard Landing Spreads: Hong Kong GDP Tumbles At Fastest Pace Since Financial Crisis
The residential price correction does have more inventory as a main cause. More inventory and more new homes bodes well for the future, just not for prices near term. JMO.