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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Optimism On China Trade & Brexit Drives Markets
Bloomberg reported that China wants existing tariff rollbacks before ChIna will buy 50 billion in US crops. Trump is being toyed with. He brought it on himself. We can only hope that China will drive POTUS crazy. Time for someone to be prez who realizes that China is bigger than we are. Supposedly he know this, according to Michael Pillsbury who spoke about PPP on Fox biz. But does he realize he is not going to beat China?
Skinny Deal: Whose World View Is Currently Winning?
Update: Oops. Bloomberg reports that China will only buy the massive 50 billion in farm products if Trump rolls back more tariffs. China is playing with Trump, and frankly he deserves it.
The Trade War That Never Stops
This article pins down the problem with Trumponomics.
Is Steve Bannon Doing China A Big Favor?
Update 9: The Skinny Deal with China may allow more compromise with China in the future. It all depends if Trump sides with Bannon or with pragmatism. You can be sure that China will still move towards greater national independence even if the tariff wars are completely resolved. Trump has hurt the United States' position with China. It may be difficult to measure that damage going forward.
'We Have Lift-Off': Yields Lead The Charge Higher; Load Up On Equities, Exit Gold Longs, And Sell US Dollars
Great answer. But there were massive pur hases of treasuries as yields declined. Those are often used as collateral. The counterparty margin losses could be massive if rates rise too quickly, but I cannot give a time frame regarding how much time would elapse or how fast the rise in rates would be before it is a danger.
'We Have Lift-Off': Yields Lead The Charge Higher; Load Up On Equities, Exit Gold Longs, And Sell US Dollars
Hey Robert. Two things. First, I don't get the connection between rising reserves and funding costs because we are told that excess reserves cannot be loaned out. I suppose the interest on excess reserves can be. But Jamie Dimon warned in another period of time where interest on reserves were in place, that a fast rise in rates could hurt the banking system. What if treasuries, the collateral of choice in derivatives markets, lose too much value too quickly?
'We Have Lift-Off': Yields Lead The Charge Higher; Load Up On Equities, Exit Gold Longs, And Sell US Dollars
It depends on how fast long yields rise. Collateral issues connected with fast rising yields could cause market selloffs to meet margin calls.
It's All About The December Tariffs Now: "These Negotiations Look Much More Difficult Than Phase 1"
Only sustained compromise will keep this trade defusion going.
MMT Heaven And MMT Hell For Chinese Investment And U.S. Fiscal Spending
Must read. Doesn't answer all my questions about MMT but certainly it is helpful.
The Shocking Truth About Trump’s “Trade Deal” With China
It is up in the air. Tech transfers will be the ultimate driver of a bigger deal. But compromise with China will be crucial and necessary. Will we do so?