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
Half Of Puerto Rico's General Fund Debt Is Either Optional Pay, Or Invalid COFINA Bonds- Bankruptcy Is Not A Solution
This is a great article. You wonder what motivates people to buy these bonds, other than not being told the truth about them. But people are desperate for bonds for use as collateral, and they are cheap, so they get bought.
Market Tanking After Fed Pricked Their Own Bubble
Peter, Donald Trump is a potentially dangerous individual. Nobody likes Hillary, but I would sleep better if I knew Trump wasn't insulting some government somewhere on a daily basis.
Market Tanking After Fed Pricked Their Own Bubble
Well, it would be crazy if they bought long bonds, already in massive demand. So what is left to buy? They cannot buy non financial assets, although the BOJ legally is doing so. Not a big fan of them buying financial assets as it seems unfair, but if the alternative is negative interest rates, that is even more unfair and would constitute a crisis in banking.
The Canadian Dollar’s Rapid Devaluation: A Precarious Predicament For The Bank Of Canada
I agree with you, Dr. Duru that it is an old doctrine based on the '70's. I remember them well. But, it is a doctrine that has no substance today, so the tightening will likely be too much. But rock bottom rates are no good either, if you listen to the Norwegian bank that wants to do away with cash!
Moving Away From Oil Reliance
Davos=Move away from fossil fuels. The US and Europe will likely move away from fossil fuels while other places do not. It will prove to be a big mistake, and may lead to war. Eugenicists are licking their chops for the time when oil producers become useless eaters. That new world is not something to celebrate, IMO.
The Canadian Dollar’s Rapid Devaluation: A Precarious Predicament For The Bank Of Canada
So, this is what I think, Dr. Duru, the central bank of Canada could now be in the business of popping bubbles. It will likely make the situation worse, so someone will be able to take advantage of the situation.
The Canadian Dollar’s Rapid Devaluation: A Precarious Predicament For The Bank Of Canada
Does that work in the real world? Inflation expectations is a concept that skates on thin ice, IMO. As the Canadian dollar plummets, and people feel poorer, they won't be inclined to spend more. In the old days, raises accompanied soaring prices. That has not been the case this millennium.
Chasing The Wild Goose In Davos
Actually, Acting Man, the government is too weak, not too small. It is too weak to fight Davos!!
Chasing The Wild Goose In Davos
If globalization is dead does that mean America will be able to take down the TBTF banks in a crisis? That will be the real test, along with the US pulling out of the middle east. Not holding my breath on either.
The Canadian Dollar’s Rapid Devaluation: A Precarious Predicament For The Bank Of Canada
Wow, Canada is worried about inflation?