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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Former CIA Deputy Director Gives A Stunning Reason Why Obama Has Not Attacked ISIS' Oil Infrastructure
Except that it isn't crazy, Corey. www.theguardian.com/.../us-isis-syria-iraq
Sell The Bonds, Sell The Stocks, Sell The House — Dread The Fed!
So, I am no fan of long bonds being used as collateral in the derivatives markets. But what can crash it? I could see the stock market crashing, but seriously, John, you have been talking about the blow up in this convoluted bond market for years. As long as the Fed keeps a lid on the common man and his economic growth, it looks like it is in control. Well, at least until yield scraps below zero. There will likely be a flattening of the yield curve, and then the Fed will probably stop raising rates past 2 percent. Whatever the case, there is a massive demand for long bonds that doesn't look to end soon. Demand up, yield down.
Why I Am Never Going To Own A Home Again
You may want to update those apartments. Sounds like you got a great deal on your house and live under your means Smart.
Money Velocity Is Crashing-Here's Why
I bet there is quite a velocity of money among the speculative class. Wish we could find measurements of that
What The December Fed Rate Hike Means For Investors
So, the junk bond market is contained? I would feel more comfortable if Henry Paulson would affirm that. (Just kidding.)
Ten Investor Warning Signs For 2016
Banks lend on the long end, but the long end bonds are in massive demand due to collateral needs of derivatives clearing houses. So, the curve will likely stay flat for a long time, slowing lending to the real economy.
The Economy They Hope Or The Money That Is?
Again, it is all abut helping the banks. Rates won't go too high, since banks bet on low rates. But a modest increase helps banks, who won't pass the rates on to the depositors.
Industrial Production Turns Negative
Fed exists to save the banks and sell bonds. Looks like the financial markets are overheating while MainStreet is declining. But Mainstreet is not part of the silent Fed mandate.
Dollar & Crude Dumped, Bonds Pumped As Yellen Jawboning Saves Stocks
Massive long bond demand continues.
Don’t Cry For Argentina, Change Is Here
Don't give an inch to the globalist vultures, Macri.