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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Bank Of England Economist Calls For Cash Ban, Urges Negative Rates
Larry Summers' totalitarian plan is being swallowed by the banksters. He is weaving a web of total fascism, where the banks will rule the world.
Interbank Credit Risk Soars To 3 Year Highs - Is This Why Janet Folded?
I thought the central banks doing all the lending would eventually make interbank lending obsolete. Lol. Guess not.
Riding ZIRP Into The Doom Loop—Monetary Central Planning’s Dead End
The only thing in your analysis that is suspect (maybe not pointed out in this article) is that the credit boom as it pertains to treasury bonds is still on. Huge demand for bonds as collateral has forced yields relentlessly lower. That won't change. Banks take the low rate floating site of the bet and businesses take the fixed, higher rate of the bet,and banks must see low interest rates continuing. That is likely with so much demand for the bonds pushing rates down.
Riding ZIRP Into The Doom Loop—Monetary Central Planning’s Dead End
It is all about the banks. Interest rates should be lower and the banks have been goosing the auctions as a lawsuit alleges. So, really Summers, diabolical totalitarian that he is, is right, negative rates will be needed and maybe a cashless society where we all become prisoners of the bankers.
Whitney Tilson Agrees With Donald Trump On Carried Interest
Even Trump can get some things right. He could wake the Republicans up, maybe, on this issue.
Investors Dump Stocks For Safety Of Bonds & Bullion In Yellen's New "World Of Confusion"
Well, it could be fast becoming Larry Summers' world. And that is troubling, indeed.
Bank Stock Roundup: Low-Rate Concern Continues; BofA And Citigroup In Focus
Well, banks would have had to pay interest. I don't think it is a given that banks would do well paying interest, when they settle for peanuts on excess reserves. Will Rogers always said that if you can't hike rates a percent or in this case a quarter of a percent, the banks are broke. Well, if they have to pay interest.
Chart Of The Day: Wall Street Vs. Main Street - Thanks, Fed!
Yeah, really. The Fed is afraid. It pays a little interest to the banks on the excess reserves, and the banks can't pay interest because it will show they are kind of broke. It will nullify the interest the banks receive on the reserves and they must really need that money.
The Fed Isn't Doing What It Was Meant To, And Can't Do Much Else
Cool article. The long bond is held hostage to artificial demand and even if the banks try to rig the bond auctions to drive prices down, they still are very high. The artificial demand is that bonds are used as collateral in the clearinghouses. In Europe, people are so desperate for pristine collateral that they are willing to pay interest on it. Most mortgage issuers would shy away with the long bonds yielding so little as investors don't like that.
Japanese Stocks/USDJPY Plunge As China Cracks Down On Aggressive Buying By "Sinister Stock Squads"
One of the guys has his own show in China and his alias is dealbook.nytimes.com/.../?_r=0
Just kidding. But tamping down hot money from stock squads would help over here too.