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
All Bad At 0%?
Great article. It isn't necessarily debt as such, but the kind of debt we have that is hurting America and the world. We have too much bond debt, which is used as collateral in derivatives markets. Credit should not be used as gold, or copper or any real asset of value. I wrote about it here, Axel: www.talkmarkets.com/.../will-fed-and-central-bankers-give-up-alchemy-to-save-the-world
Is The Junk Bond Market The Next 2008?
Hey Cullen, it could come down to junk-bonds-as-collateral. If junk bonds blow up in interest and dive as to value, the betting would require more collateral and maybe the counterparties can't afford more collateral. Maybe worth checking out.
Dow Testing 70-Year Bull Market Support Right Now
Wow, pretty bubbly.
Panic Is Spreading, Part 1: Surge In Junk Bond Defaults Imminent
The Fed should raise rates to 4 percent. Then if the economy crashes they can cut to zero again. Negative rates could have disaster written all over them.
Energy Lending Now A Major Burden For Banks?
Good way to manage banks, tough for the oil patch. But that is what risk is all about.
What To Make Of Contradictory Fed Babble
One more point, since the real economy was a focus of Keynes, and the bubble and speculation economy is all the Fed cares about, you are giving Keynes a bad rap. Now speculation benefits from loose money and stimulus. It wasn't always that way.
What To Make Of Contradictory Fed Babble
If they err on the side of easy money every time, they will not get a cushion above zero when the next downturn hits. At that point, they will try to impose negative interest rates and even a totalitarian cashless society.
#1 Reason Stocks Are Declining; Is Hillary To Blame For Biotech Smash?
Well, lots of pharmacies think we are in boom times and charge outrageous prices.
Strength In Employment And Housing? Both Are Weaker Than You Think
Well, raising rates would help cushion the next downturn which will be bad with the need for negative rates and the totalitarianism of a cashless society a possibility. Cool article, though.
Credit Bubble Bulletin: New World Disorder
Hot money speculation is like a curse to the world. You feel good for a time and then the money leaves and the speculation ceases and the debt is unwound, maybe.