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
Killing Off Community Banks — Intended Consequence Of Dodd-Frank?
Yes, communities need to bypass Wall Street, but don't count on any help from the Fed.
Tesla Shares Hit The Wall After Reliability Report
NO, I don't give him credit. He has globalist and US government backing for a specific purpose, IMO, and that is to defeat Russia by stopping US reliance on oil. Russia is almost entirely dependent on oil exports. That is a very dangerous policy. I wouldn't have said that was his goal until he said manually driven cars would one day be outlawed.
Democratic Socialism
They are certainly authoritarian, moreso than in the west, but they do have a form of capitalism. I think it is very crony-like for the party, though.
Democratic Socialism
Socialism presupposes capitalism continues. Communism, on the other hand, is much different. Roubini said that crony capitalism is when the profits are privatized and the losses are socialized, which is exactly what happened in the housing bubble and crash.
Tesla's Autopilot Is Mostly Hype
True, Susan, but if they have such poor quality on an expensive car, then how will the cheaper model fare?
Tesla Shares Hit The Wall After Reliability Report
This trouble could not happen to a more arrogant guy, Elon Musk, who once advocated the nuking of Mars to warm it up. Hard to know when the guy is serious, but he also once said that manually driven cars would be outlawed. He is trouble, and now he has trouble.
Are Negative Interest Rates Coming To The US?
Nice article. I think the Fed, even though this is not the official position, is predisposed to keeping rates low. I wrote about massive demand for long bonds, and am interested to see if that can be quantified past 2016. Here is the article, Matthew: www.talkmarkets.com/.../fed-weakness-future-insatiable-bond-demand-with-short-supply So, there are many in the Fed that stick to the desire to normalize, but the numbers and the pressure is ever downward on yield. You bring up a really good point, that banks are not so interested in cash and will charge, and probably would rather sell you a bond with a negative rate than want to hold your money which could have been laundered. Lol. What a system! Following you, Matthew.
Is The Business Cycle Dead… Or Just Dormant?
One more point, why is it that the Fed pays interest on excess reserves the banks hold if it really wanted the banks to lend? It looks like it really doesn't want the banks to do serious lending, which means it is a bit of a scam, that the economy is slow. It is engineered to be slow.
Is The Business Cycle Dead… Or Just Dormant?
We never had the low interest regime being so strong as we have now. We never had the need for slow growth to preserve the banks that we have now. Credit only goes to the uber rich for the purposes of asset inflation or maintenance.
Monday Mandarin Meltdown – China’s Fake GDP Still Sucks!
Yes it is terribly authoritarian. But it is not an empire. We are the empire. And empire is not good, either, unfortunately.