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
Flashback To The 70’s
I would agree. However, the Fed is trying to stimulate a little without getting too close to zero. The Fed is afraid of recession, because of derivatives, yet it is afraid of zero and afraid of inflation. With the trade war it makes monetary policy even more complex. I think you are right, not much of a sugar high. Trump wants negative rates. He is a crazy old fossil.
Flashback To The 70’s
Now we are dealing with central bank sugar. It has no stomach for recession.
Is 3 Quarters Of Negative Earnings Bad News?
Great. We will see if it works out. Of course insurance companies cannot survive well with negative rates. Hopefully we are not headed there. One more point, we need to see how derivatives are impacting the repo market going forward.
Much More Than This Week (TRDKWTAD)
With primarily treasury bonds and haircutted private bonds being used, what is causing bad repo collateral? It would be interesting to find out!
Is 3 Quarters Of Negative Earnings Bad News?
Interest rates were rising for mortgages. That could be a drag on your upbeat scenario.
As Long As Trump Tweets His Way Randomly Through The Trade War, The Dollar Will Stay Strong
He is tariff man. He has no chance of changing as long as Wall Street half believes him. Cramer was right about this. Sell into the trade war and crash the market until Trump relents.
Fed Signals Will Break The Economy. Wait Til Trump Finds Out
Update: While the Fed did indeed stop rate hikes, the premise of this article is correct. The Fed does not like the direction of interest rates towards zero. The Fed does not like Trump's trade war. But it is not quick to cut, cut, cut! And with an unstable POTUS45 it may be better to let him lie in the economic bed he has made for himself.
China Nastier Number Four
Little bit too cynical. China has plenty of stimulus. But why use it when that nation can hurt our stock market? Doesn't matter if on purpose or not, a slowing China can mangle US stocks.
Could Drone Strikes In Saudi Arabia Send Oil To $100?
Truth is, most Americans are concerned about the starvation in Yemen. Saudi Arabia is not well liked. That is partly because of the reporter who was murdered and partly because people believe they were at the center of 9/11. But that is misguided. Saudis are a semi secret ally of Israel and the USA, not an attacker. BUT THEIR WAR IN Yemen is disgusting.
More On Trump And Trade
No way. This is China's opportunity of a lifetime to stuff the chickenhawks who crawl around the Republican Party. You know, like Bannon and Gaffney.