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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Our Grandchildren’s Economy: Extreme Robotization Leads To Abundance, Not Poverty
So our only hope for jobs is that robotization fails because there aren't enough customers. Cool. But the hard part will be getting from here to there!
How Strong Is The Case For Helicopter Drops?
Real helicopter drops have nothing to do with the fiscal budget. It is Fed money, Fed balance sheet. Japan has a law against real helicopter money. Everything has to be sterilized. So, these have nothing to do with Lonergan's view of real helicopter money.
Accidental Amazon
That was a funny story.
Three Things I Think I Think – This Might Make You Mad
So much money invested in dubious enterprises could be a warning that the biz cycle is weakening. If these venture capitalists are this reckless it must be getting more difficult for them.
Rethinking Recessions
So, at some point when will rate cuts dig into the zero lower bound? We pay massively for insurance and make no money on savings precisely because the Fed does not take down this economy, and the reason is derivatives!
China’s Dollar Problem Puts The Sync In Globally Synchronized Downturn
I think China would like to see prices from factories go down to offset higher food costs. The Chinese consumer only accounts for about 40 percent of GDP. I frankly am not worried about China because of PPP. China can import less and lower prices and create demand. China made it through the Great Recession and I think China has a better chance of making it through the next big recession better than the USA chances.
JP Morgan Warns The Big Squeeze Is Coming
So, will these repo infusions weaken various long bond auctions? Worth watching.
Nearly Half Of US Consumers Report Their Incomes Don't Cover Their Expenses
Trump has given up on the US consumer. He wants a cheap dollar. Yet he wants to export to a world that is slowing economically. And he wants fewer cheap imports that many consumers must rely on.
A Potential Game-Changer From The Fed
There could be rotten collateral in money markets. JP Morgan says money markets have big collateral issues. What is the author's take on those developments?
September 2019 CPI Inflation And Yield Curve Updates
"Long term yields cannot go as low as they need to." That is a fascinating statement, Kevin. I think we saw caps near 3 percent higher back in 2018. Art Cashin said that was high enough. Now we see banks not wanting long rates to go too low. And yet, counterparties are gorged on treasuries yet banks don't want them as collateral! JP Morgan says money market collateral issues will get much worse.