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
After "Murderous" Squeeze, China Boosts Capital Controls By Ordering Banks To Limit Yuan Outflows
Could this affect the US housing market, particularly the West Coast, bubbled up by Chinese investment?
PBOC Wastes No Time Proving Desperation
That HIBOR graph is terrifying.
How To Invest Your Powerball Winnings
Lol. Invaluable information.
Is Inflation Around The Corner?
I think the Fed predisposes low interest rates. So, raising rates a little bit looks like the Fed is proactively wanting to climb above zero, but I think it is half hearted and maybe just plain fantasy.
QE: “Printing Money” To Tax Your Own Citizens
Cullen, you know banking. So, is all base money backed by collateral? The Fed says it is. How effective is that in stabilizing money? It certainly is not the entire money supply.
2008 Has Already Happened In The Energy Sector
I remember 10 dollar oil in the oil patch, around the 1990's right? Houses were for sale, as people lost jobs. The oil patch values declined massively. Debt forces fire sales. The low price destroyed the Soviet Union. You wonder if this round is political as well.
Hey Cullen, targeting NGDP seems to be "working" in Japan, except for two things. First, is it just speculation as the BOJ buys Reits, and second, are low long bond rates making mortgages too low interest to allow profits for the banks?
Fed Premeditated Mispricing Of Risk In Housing, Oil, Junk Bonds And Other Markets
Thanks Ayelet. The Fed fixes prices the old fashioned way, in the back room. Abenomics seeks to fix them out in the open. It is all a sign of desperation, but the alternative, negative rates and cashlessness, is far worse.
BIS Redefines Inflation (Again)
Deflation may not be bad if, of course you were not in negative interest rate territory. Too bad the BIS isn't worried about that. Maybe it will one day rule the cashless world.
The Great Fall From The Great Wall
I will be looking for your reports, Gene.
The Great Fall From The Great Wall
Gene, question. We all don't want a cashless society. How do we reflate and prevent the cashless society without doing so in a toxic manner. We always offer easy credit loans to people who can't pay them back and call that reflation. I have been discouraged by the Market Monetarist solutions. Perhaps you have some ideas I could look into. :)