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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Alternative Uses Of The Fixed-Income Markets
Well, Trump tariffs and the need for collateral could bring bonds back.
Mysteriously Financialized (Or Not)
From this article:
"In other words, whatever this is under “other” it is creating more corporate net worth which then, according to the Q ratio, perhaps understates the degree of over-valuation (it’s a tricky series of logical leaps). To put it more broadly, there may not be as much economic-related net worth as the published figures identify because of what’s not being identified and therefore may have been derived by something other than economic value."
It would be great to see more about this issue.
Should Cable TV Fear AT&T DirecTV Now?
If the major cable companies like Charter offer alternatives they will prosper. If they don't, at a competitive price, their decline will continue. Direc TV is a viable alternative, still. I am rooting for the cable cimpanies as well, because competition and innovation are good things.
Capital Income Is Consuming Less
This is certainly a pretty accurate indicator. Add this to consumer weakness and the economy may not be doing as well as it appears.
Make No Mistake, An "Inflationary Overshoot" Is Unavoidable At This Point
PCE inflation has been running at 1.8 percent. The author may be proven right, but there isn't much PCE inflation so far.
America's One-Sided Domestic Financial War
The truthfullness of the first part of this article is both bold and truthful. But the article then places much of the blame on socialism. I cannot buy into that. The government has a duty to help the old and poor and disadvantaged and fix the roads and invest in industry. It is not classic socialism to do so. More should go to helping citizens than to funding wars.
To the Austrian economist, deflation is no big deal. But it is a big deal. Cutting out our socialism which is not real socialism would be a catastrophic mistake.
“It Is Their Job To Entertain. It Is Your Job To Ignore…”
War of the contributors.
What Is Holding Down Long-Term Interest Rates?
Maybe long bonds are simply too valuable as collateral and are being hoarded, Prof.
Where Is Inflation Headed Next?
But isn't this procyclical inflation weaker than we would expect because most jobs created are poorly paid jobs? If anything, with more people renting, housing appreciation is simply a tax, not a sign of growth in household financial health. Good point about Gentrification as being something the Fed has no control over. In booming cities, house prices appreciate partly because growth policies for housing are limited. This would seem to mean wages would have to go up there, but not everywhere. Interesting article!!
The Unemployment Rate Is Useless, But That Doesn’t Mean It Isn’t Useful
I can't see Donald #Trump, in the long run, being partial to labor, since he has spent his life stiffing labor! He only wants made in America to benefit his rich buddies. It was a scam from the start.