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
"You Want Another Hike? Already?"
They can't raise interest rates to stop growth if they had to because the banks have bet on low rates. They can't let growth even get started, Amanda.
My "Wisdom" On Changing My Mind
"They were given a limited toolkit to deal with the most devastating financial crisis in the last 75 years and Bernanke and his team did about the best they could."
They had a regulation tool kit, and if it wasn't strong enough it was because Basel 2 didn't want it to be strong enough. They could have stopped bogus AAA rated loans from Goldman Sachs and others from being spread around the known universe but they didn't do so. Tim Geithner could have stopped it in his tracks as NY Fed president.
And don't forget, Cullen, in Feb, 2004, Alan Greenspan said you could get a better deal buying an adjustable mortgage. What you are saying, Cullen, is mythical because the Fed was in on the bubble from the beginning.
However, the Fed certainly did nothing between the subprime panic of 2007 and the real crash over a year later. They let the GDP crumble.
Shampoo Policy: In Europe, Rinse And Repeat
Ah, Jeffrey, but what happens when the ECB buys so many scarce bonds that they produce negative interest rates, even for the 10 year? The ECB will have lots of money to hand over to the responsible governments in the Eurozone, and investors will pay to keep the Eurozone from unraveling. Consider this: www.talkmarkets.com/.../draghi-and-germany-have-a-secret-plan-to-save-the-eurozone
My "Wisdom" On Diversity In Finance
"Money is absolutely necessary up to a certain point, but has a diminishing rate of return relative to overall happiness as you obtain more of it."
That certainly is a wise statement.
Why I Love/Hate The Oil Companies
I think Musk is an evil globalist, futurist and maybe eugenicist. You really want his type dictating what Americans can and cannot do, Joe?
"You Want Another Hike? Already?"
The Fed cares about the world more than about the citizens of the USA. It is a globalist institution.
The Yellen Put Option Lives!
I think the Fed wants investors to pay for safety, giving government a massive windfall. That can't be good.
Rocky Road: Overestimating The Fed's Influence
I think the message of low rates is more a result of massive long bond demand, but fast growth is definitely out.
Rocky Road: Overestimating The Fed's Influence
I think the message of low rates is more a result of massive long bond demand, but fast growth is definitely out.
Yellen Comments Further Flatten The Yield Curve
Also, author, I would like to add that long bond yields appear to be a reflection of massive bond demand, not necessarily a slowing of the economy.