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
less
Latest Comments
Debunking The Big Short: How Michael Lewis Turned The Real Villains Of The Crisis Into Heroes
Risk was mispriced, and people knew it. Lewis protected the Fed who allowed it. Even BAC has recently said the Fed is responsible for mispriced risk. The housing bubble and crash were both premeditated. Alan Greenspan should be in jail, not receiving after dinner speaking fees. This was a conspiracy.
Misguided Plans To Fix The Fed Part 1: Bernie Sanders
According to BAC, bubbles happen because the Fed allows mispricing of risk. That means they are, as I have said since 2010, premeditated bubbles.
Furious Coal Baron Lashes Out: "Obama Is The Greatest Enemy I've Ever Had. It's Beyond Personal"
It is tough. Coal sucks. Loss of jobs sucks. It is a sucky situation.
Even The Big Banks Now Admit It: "This Is How The Fed's 'Massive Manipulation' Broke The Market"
Also, this means, Tyler, that the Fed mispriced risk in the housing market by defrauding with their Gaussian Copula. The MBSs that went bad were mispriced as to risk. This means the housing bubble was PREMEDITATED.
Even The Big Banks Now Admit It: "This Is How The Fed's 'Massive Manipulation' Broke The Market"
So, investment banks push asset prices up and central banks deflate that when deemed necessary. Well, it is better than 200 dollar oil!!
Where Did You Put Your Cash After The Fed’s Rate Hike?
You already give a car loan to any warm body. But easy money is not so prevalent in the housing market, Gerald. Raising interest rates would give banks more incentive to do a 30 year loan. But realize that interest rates going up could destabilize banks that bet on LIBOR floating rates while the counterparties are forced to bet on the fixed higher rates.
Bank Of Montreal Asks If "Oil Prices Could Collapse To $20"; Answer: "Yes"
What if non OPEC increases production? And OPEC not cutting back shows it is in the pocket of the west in its desire to crush Russia. I like low oil prices, but this could be a BAD IDEA.
Europe Enters New Year With Nearly $2 Trillion In Sub-Zero Interest Debt
Calls for a cashless society will likely increase as bankers' backs are against the wall of zero bound.
No Pain, No Gain: The Only Cure For Low Bond Returns Is Rising Rates
I am not convinced long bond will appreciate as to yield. The demand for them is out of this world, meaning any appreciation in yield could be the result of manipulation, not market factors. That is just my opinion. Yield is down today. :)
Next Year Will Be One Of Houston, Yellen Has A Problem!
So, what does the author think about the new gold, treasury bonds?