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
The Changing Nature Of Banks, Post-Crisis Edition
The Fed can dump treasuries. There is a shortage of the long bonds as it is. So that can't be the reason. No, the reason is the Fed simply does not want the economy to grow too fast, because it has, and its banks have, bet on LOW interest rates. It is a scam of sorts. But on a grand scale!
Why We Need To Rethink The Financial Future Of Oil
Abandoning oil is a bad idea for peace. The west may abandon oil, but Asia and Russia will not. There could be serious conflict if oil is used to beat down the Russians. And really, that is what this article is about, isn't it?
Why We Need To Rethink The Financial Future Of Oil
Clearly, the oil futures market can be cornered from time to time. An example is in 2007, when oil hit $147 per barrel. Even the Saudis complained to the US government about investment bank interference in the price of oil back then. Hopefully the free market is at work in the downside that we see now. One would hope politics is not involved.
Mannkind Creates License Agreement And Collaboration With Receptor Life Sciences
Interesting alternative to needles.
The Citadel Is Breached: Congress Taps The Fed For Infrastructure Funding
It didn't happen that way under FDR. But then America was sovereign over the banks. Not so sure that is the case now.
Fed Moves To Quantitative Contraction, QC Did Anyone Notice?
So, is this a reduction in excess reserves, Tony? Interesting article and charts. Also I wrote about low rates and you confirmed that.
Fix The Error
Certainly Japan and the US would be better off QEing real assets, and give up on bonds, which apparently are either in massive demand in the US or are comatose in Japan. either way, rates are low and buying the bonds won't make those rates go up.
Don’t Look Back
Monetary policy has kept inflation low, as money velocity is nil and money is not filtering to main street. Plenty of money on Wall Street, well, unless it all crashes.
Why Good News And Bad News Are Not Helping Stocks Anymore
Margined investors are the naked ones when the tide goes out.
The Boy Who Cried Gold: Time To Listen
We haven't been kicking it as to velocity, even with low rates, Adam. I look at it this way, banks won't lend if long rates aren't higher. The big banks are already pulling out of the mortgage business. The new demand for bonds as collateral in derivatives markets makes it unlikely that long rates will go up in boom or in bust. Something needs to be retooled in the financial system or we will have, unlike the Austrian libertarians observed in the past, slow growth, then bust. Boom and bust seems so dated!