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
How A Federal Reserve Interest Rate Hike Hands Over Billions To Big Banks
The Fed could sell the treasuries. But they hold a lot of other not so great bonds. Those they couldn't sell. There is a massive demand for treasuries as collateral.
As far as payment on excess reserves, it seems bad, maybe it is. But the alternative is Europe where the banks are so beaten up by paying the central bank negative interest that they can't even lend out into the real world.
Strong banks could eventually mean a stronger economy. And I don't see rates going up that much, but if they go up a little it is better than negative.
Why Our Financial System Is Like The Titanic
I think the author should be more specific as to factors that would break the system.
Help! Can You Put A Price On Love?
I personally would not recommend just living together. However, we can see why the economy is not going anywhere, but the bankers are still making money. Debt slavery for life!
The Fed Did One Thing Right In The Great Recession. But It Wasn't Enough
Yes, from mispricing risk, which created the bubble, which created bad bonds and resulting panic, to cutting off the money supply, making the Great Recession worse, the Fed really acted against the interests of the people of the United States, in most of what they did. It is shocking, really.
Financial Market Liquidity Isn’t That Important For The Economy As A Whole
Well, in those days people could afford to buy a house without easy money. That is where things have drastically changed in the economy.
Credit Card Debt In The United States Is Approaching A Trillion Dollars
The goal of the Fed is slow growth. If credit card debt helps the Fed achieve its goal, then it is fine with them!!
Poor Man's Infograph: The Fed's Conundrum
I think inflation is a function of prosperity. I don't think the Fed will allow too much prosperity. JMO.
Poor Man's Infograph: The Fed's Conundrum
There is not too much debt for households compared to the HELOC era.
This Is What A Broken Bond Market Looks Like: Treasury "Failures" Soars To Multi-Year Highs
The auctions are still doing ok. This is just repo, right?
Give Me Liberty Or Give Me Debt
You can't collect senior debt when they die. So, what are banks going to do? We have no growth and massive lending by the banks.