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
less
Latest Comments
Reader Asks “Why Are Zero Interest Rates Bad? What Should The Interest Rate Be?
Actually low teaser rates caused the housing bubble. You can't blow bubbles very well when interest rates are zero. You can't have adjustable mortgages, Mish, without having a higher plateau than zero to adjust to.
Deflation Returns To Spain: CPI Negative Second Month
Problem is, Mish, that deflation could get much worse. How much deflation is too much before it gets dangerous? And surely you realize that Spain still has massive unemployment. Not something to brag about. You sound like the Fed! I agree with you that the Fed has mispriced risk in the past, and blows bubbles that crash. But, also, now the Fed seems to have adopted a do nothing course of action. That has risks as well.
Larry Summers 100 Dollar Bill Ban And Westfalia Lost
Apparently Canada has some larger bills in circulation. No longer issued, there are 1 billion dollars worth of $1000 notes outstanding.
Plea To Double Down On Stupidity: Abenomics
So, Mish, what is your better idea? Our inflation rate is not reaching the target either. We are at 1.31 percent. Only difference between us and Japan is that our banks are lending to the world in massive quantities, we don't see it, but it makes our Fed happy.
Fed To Keep A Weather Eye On Global Economy
US banks are lending into a speculative global economy, taking market share from European banks. This is why the Fed is so cautious, since US banks depend upon Europe.
LIBOR Destroyed Subprime. But The Fed Deepened The Great Recession
It doesn't seem to concern the Fed if that happens. I will have a new article, hopefully, out on that today, Joe.
Where Driverless Cars Will Take Us
While this is a pleasant and interesting article, the demise of manual driving gasoline powered cars will result in a world depression the likes of which no one has ever seen. And no one, and I mean no one, will be able to get to work on time. Driverless cars are a bad idea. They should be boycotted because they are dangerous to the world economy. And they simply are inefficient, as this article proves.
Larry Summers 100 Dollar Bill Ban And Westfalia Lost
He has power. That is a big concern to many of us, but most Americans could care less. That is the problem, most Americans are oblivious to activities of representatives of finance. They think Buffett when they think of finance. The don't think of Krugman and Roubini and Summers and Sumner. etc. And they don't think of the destruction of national sovereignty since most of them were not born when the US had a thimble full of sovereignty, back in the 40s, 50s and 60s.
Larry Summers 100 Dollar Bill Ban And Westfalia Lost
I share your sentiment, Ronald. Maybe he will just retire!
Awaiting Some Tumultuous Market Tumble
The only real recovery will be in production of goods and prosperity through capital and labor working together, maybe even with government, in building America's future. Simple speculation doesn't build a real economy.