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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Want A "Cashless Economy?" Not!
You wonder if the Hassenfeld Brothers would have approved of how things are going.
50% Of Canadians Say They Are Within $200/Month Of Being Unable To Pay Their Bills
It is possible to loosen the money supply while raising rates. Central bank magic is needed but they seem to be slow to react, as always.
No Zero Interest Rates Here
I like number 6. I think that there is an eleventh reason, massive demand for bonds as collateral. That could be the clincher in my view of things.
This Time Is Different!
Lol. Well, anyway, it may not be 2008 for America but you have to raise at least one eyebrow at the behavior of European bank stocks.
Financial Crisis 2016: High Yield Debt Tells Us That Just About Everything Is About To Collapse
There is a difference now from 2008. It is that there are more demand for long bonds now as collateral so that the yields on long bonds are artificially low. So, watching other factors may be wise.
Oil: Is It Different This Time?
That whale is unidentified, Vivian. :)
Oil: Is It Different This Time?
Well, they say most oil produced in the world is profitable at 35 dollars per barrel. It will be interesting to see if that price will be achieved in a few months. I think it will be. Russia will likely stop regime change in Syria and maybe even go to war with Turkey. That should drive prices up some.
Bloomberg Columnist Explains Why Fed Pays Interest On Excess Reserves – Very Poorly
Bingo, there is a shortage of treasury bonds in the new CCP markets and for two party derivatives deals already, and yet the Fed is afraid to sell bonds over time? That is absurd, Mish. And yet, as you point out, that is exactly what they are saying. It is almost like they want slow and slower. They want long bond yields to go negative, it seems. I am wondering if an inverted yield curve is coming.
LIBOR Destroyed Subprime. But The Fed Deepened The Great Recession
Rising rates would not be a problem if the Fed did other things to loosen.
Why NIRP (Negative Interest Rates) Will Fail Miserably
Yes, NIRP is like a tax, only it comes from a private banking system made to look like a public system. Ask yourselves why the Fed, except for FRED and some other publications, shows a copyright at the bottom of their online papers. Governments do not do that.