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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Earnings Growth Based On Debt And Buybacks? Totally Unsustainable
Interesting article. Stephen Williamson, VP of the St Louis Fed posted that he didn't see excess in the lending now going on. Are we comforted by that view? Seems like there is some recklessness in stock buybacks. And certainly there are auto lending risks. And junk bonds financing the oil patch are dreadful.
But the richer folks own most of the houses so all this weakness and excess debt may not add up to the housing crash. I don't know.
Don’t Be Fooled… “Helicopter Money” Is Already Here
QE is certainly helicopter money to the elite. But don't worry, helicopter money for main street, you know, the guys who suffered because of the credit crisis, is very unlikely to happen!
What Killed The Middle Class?
I agree, except that crony capitalism is not socialism. As Roubini said, the profits are privatized and the losses are socialized.
30Y Treasury Yield Tumbles, Signals Trouble Ahead For Banks
Bond Hoarders R Us. Well, bond hoarding can be the result of other issues in addition to banking issues. Derivatives collateral comes to mind.
Egon Von Greyerz: "The War On Cash Is Real!"
I enjoyed the video. Gold has been confiscated before. Gold is like cash, not loved in the hands of the people.
Domino's Unleashes Pizza-Delivery-Robot As 2 Out Of 3 Americans Expect Jobs To Be Automated
When the customers dry up, they will be reminded that they should have listened to Henry Ford.
Chart Of The Week – Soaring C&I Loans – Corporate Execs Steal It While They Can
C and I loans used to go into the real economy.
Market Manipulation: You Better Believe
One more thing though, they cannot allow serious inflation. The banks have bet on low interest rates.
Market Manipulation: You Better Believe
Actually, putting the banks in front of the markets started before 2008, when the Fed accepted mispriced risk of CDOs, based on a faulty formula by David Li. But the concept of banning short sales of financials leading to protecting the banks is worth more study for sure.
Have Economists Learned Nothing Since The 1970s?
One more point, it is clear that inflation was continuing, while GDP was falling, in 2007-8. So by monitoring inflation and by ignoring GDP decline, the Fed simply allowed the economy to be ruined. That probably was unnecessary. Look at house prices. They have bounced back, only the middle class doesn't own them now, the wealthy investors do. That seems conspiratorial to me.