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
Why Did The Fed Turn Dovish? Not Just Trump
Update: JP Morgan says money market collateral issues will get much worse before they get better. Some collateral in the system must be crumbling. And if interest rates on treasuries go up it could be that banks continue to hoard cash rather than bonds.
Three Things I Think I Think – What If It All Comes Crashing Down?
It depends on how deep into negative we go whether policy is a failure. Bank run negative is a failure. Kelton is right about that.
Trump Is Flouting Global Trade Rules With China Yet Embracing Them With The EU
China knows that a permanent trade deal is possible but far from certain. Trump doesn't want Mercedes and Beemers driving around in the USA. We export way more to Europe. Trouble is brewing. Our manufacturing is slowing without a tariff war with Europe. Imagine what will happen if there is a full fledged trade war with Europe. Tariffs on steel are really causing problems too.
Why The U.S. May Not Have The Upper Hand In Trade War Negotiations
Good warnings!
Money And The Theory Of Exchange
I wonder about this article. Fed money is backed by treasuries. Bank loans are backed by collateral, houses, cars, etc. We don't really have fiat money. Fiat money is like Greenbacks issued without anything exchanged of value. Helicopter money would be fiat money. A little real fiat money could really help our economy!
Why The Measure Of “Savings” Is Entirely Wrong
Deficits do not raise private savings. Stephanie Kelton and her MMT are wrong. Great article.
China’s Worldwide Investment Project Is A Push For More Economic And Political Power
So here is a list of non regional members of the AIIB, including the UK and Canada.
www.aiib.org/.../index.html
China’s Worldwide Investment Project Is A Push For More Economic And Political Power
I wonder if the author knows that China wanted to BeltandRoad through the West's World Bank first, but was rejected. I wonder if the author knows that any nation can invest in China's Infrastructure Bank, and all of Europe has but not the isolationist USA! I believe he knows this, but the only reason that some world leaders don't like China's economics is because of the United States. If there was no US there would be much more world cooperation. The US doesn't have the money for it's own BeltandRoad. Face it America!
MMT Heaven And MMT Hell For Chinese Investment And U.S. Fiscal Spending
I agree, but I don't understand what he means by pure debt free money creation unless he is talking about the Fed expanding its balance sheet which would not add to the national debt. But that is more like helicopter money than MMT.
Goldman Loses Its Grip
People aren't keen for Goldman going into retail. Years of bad pr and bad press matters.