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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The Lure Of A Stable Price Level
Correction, the Fed is now obsessed with wage inflation even though overall inflation is decreasing. But it appears to be the same misguided principle still affecting how the Fed goes about its business.
The Lure Of A Stable Price Level
Interesting history lesson. In the time leading up to the Great Recession, the Fed was fixated on inflation as well, while nominal GDP was cratering. One wonders where where we are now in this inflation/ deflation difficulty. The Fed appears to be once again obsessed with inflation as the economy is slowing.
China Cannot Weaponize Its U.S. Treasury Bonds
Interesting. I can't imagine that reducing the trade deficit would allow more savings in the USA because goods would go up in price. How can Americans save more if goods appreciate in price? What am I missing?
Why Did The US Labor Share Of Income Fall So Quickly?
These reasons for labor share are solid, but the pruning of wages by the Fed, especially in the Great Recession, was a huge contributing factor.
The Fed's Powell Obsesses About Clothing
For the most part I am not a fan of the Fed. It tends to worry too much about wages, and labor share of GDP is starting to be critically low for the general prosperity of the nation. It is also generally to tight going into and coming out of recessions.
Irony Of Ironies; It’s Been Federal Funds Leading The Bond Yield Plunge The Whole Way
It would be nice if the Fed stopped paying interest on excess reserves. The banks would lend more and there would be a surge in biz activity. But the relentless decline in long rates has happened in good times and bad, according to David Beckworth. Bond hoarding appears to be driven by the need for collateral and safety.
Will El Niño Survive This Summer?
The west wasn't just cold, it was crazy cold, through May!
Mao Versus Deng Versus Xi
Steve Bannon has many enemies to fight. He wants a cold war, not Xi.He has the ear of the president.
"Pig Ebola" Epidemic Threatens To Unleash Stagflation Across China
I am sorry, China slowing is not good news for Trump. So what if farmers can sell pork? If India becomes the only real growth nation left, that won't cut it. A slowdown in the USA will be guaranteed.
The Neo-Marxist Roots Of Modern Monetary Theory
The idea is to saddle it with many obligations. That could make it a bad idea. It is one thing to put a time limit on it, which is more like Keynesian thinking.