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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Kiss That Union Job Goodbye
Those of us who count on the GDP growing can forget that too, John. Sorry, grumpy economics is starting to be the norm.
Puerto Rico Says Will Default Tomorrow, Begs Congress For Help "Or Else Crisis Will Get Worse"
Puerto Rico and Greece and others should all default at the same time. Puerto Rico and Greece, etc., are the great experiments as to whether you can survive without your own currency. The experiments are failing.
Negative Interest Rates Are An Opportunity
Sovereign bond NIRP is worse than a little IOR NIRP. But neither are essential and both may ultimately remove confidence from the economic system. IOR NIRP could remove confidence if the negative IOR gets to be a number that must be passed onto retail accounts. Sovereign bond NIRP is going to eventually backfire if the bonds are used as collateral and confidence wanes.
But it doesn't have to be that way. There is a real solution: www.talkmarkets.com/.../eric-lonergan-precisely-defines-helicopter-money
Consensus Forming: China Heading Back Into Financial Crisis
So, John, we have massive usage of bonds for collateral as well. It is to the point where the bonds are gaining price and lowering yield, even with the economy growing. So, how is that different than the USA? Also, clearly, China is not interested in Basel accords, and therefore do not have to mark to market or obey nonsensical Basel directives. Doesn't that give them half a chance compared to wimpy nations like the USA who bow to Basel? www.talkmarkets.com/.../china-could-be-the-next-basel-victim-or-not
The Cult Of Central Banking Is Dead In The Water
Surely the Fed has a tool that does not require more debt: www.talkmarkets.com/.../eric-lonergan-precisely-defines-helicopter-money People just need to get an understanding of what that tool is and how to properly use it. No treasury bonds needed!
But don't forget, the housing crash became much worse because GDP slowed. That should have been addressed. When we, mainstreet, needed the Fed it was nowhere to be found!!!
Us Treasury Gives Explicit Warning To China, Germany And Japan Not To Devalue Their Currencies
The USA economy must be very fragile if devaluation scares our nation.
Us Treasury Gives Explicit Warning To China, Germany And Japan Not To Devalue Their Currencies
It is not how fast you manipulate, it is how much you manipulate fast.
Federal Reserve Mandates Slow Growth. So Fed Must Finance American Infrastructure
They could do the right thing, Moon, and do Helicopter money properly, but I don't think they want to do that when they can get the government to pay interest to their banks.
What Comes Next — Krugman’s Fiscal Equivalent Of War
So, just wondering, David, how negative IOR is Keynesian? It looks like monetarism to me. But they could do better with monetary policy, I think: www.talkmarkets.com/.../boj-shock-explains-negative-ior-and-negative-bond-difference
“A Historic Bull Market”
Lol, not more QE! We need helicopter money! Well, maybe we don't need it quite yet. But certainly Japan and the Eurozone need it.