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
Dealers Are Still Hoarding
Dealers are not everyone. They know better. :)
This Is One Of The Greatest Deceptions Of Our Time
Well, the invisible hand is what got us into this mess. Deregulation was a way of giving an engineered banking system even more control over markets.
Odds Of A Fed Interest Rate Hike In December Just Increased Dramatically
They need to start getting brave eventually.
5% Unemployment Signaling A Recession?
Interesting article. We will have to see where the first chart takes us. It is amazing that full prosperity for all hurts stocks, historically. Could be that it just means interest rates are significantly raised. Unfortunately, the idea that they can be significantly raised this time is unlikely. They should be raised, so that they can be lowered if the economy tanks. We don't care if the stock market tanks, we need to raise them so there is a buffer, as you say, from the zero lower bound, if the economy tanks.
Biderman: "Welcome To The First Global Recession Created By Central Bankers"
They also have to keep the collateral in use in derivatives markets worth something. Since massive long bonds are used for collateral, any rise in interest rates could diminish the value of that collateral, although I think it wouldn't cause long bond rates to rise much. As long as they can turn debt into gold, the Central
Bankers will put that and lower rates ahead of other issues. www.talkmarkets.com/.../will-fed-and-central-bankers-give-up-alchemy-to-save-the-world
Will The Russians Save Us From The Cashless Society?
Could be, John, but Shay says it will be regulated as well.
Will The Russians Save Us From The Cashless Society?
Yes, the financial system seems divorced from reality.
Central Banker Jabberwocky
So, you have to wonder if negative interest rates has its goal a cashless society or is it the other way around. Seems like negative interest rates and a slow economy is used to try to insure a cashless society. However, I am not convinced that debt is a bubble. To the central bankers, there is not enough debt. For them, debt is wealth: www.talkmarkets.com/.../will-fed-and-central-bankers-give-up-alchemy-to-save-the-world They don't care about what it does to the real economy.
German Bunds Tumble Amid China Reserve "Selling" Chatter
If they held out, Safe would probably make even more. Scarcity of bonds makes the price go up!
Natural Nonsense – Why The Natural Rate Of Interest Is A Distraction
I think it is a conspiracy to keep the economy slow. Greenspan created the conundrum and is perfectly ok with it.