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
China Crushed By Debt
Debt to purchasing power parity GDP is far lower. This analysis may prove to be flawed, just like Trump thinking he can win a tariff war is flawed.
Can Tariffs Bankrupt Americans?
If inflation results, the Fed may not be able to cut because it would weaken bond collateral. But tariff wars, as Scott Sumner has said, can be deflationary as in the Great Depression. Also Fed miscalculation risk rises if the tariff was continues to escalate.
Can Tariffs Bankrupt Americans?
Intellectual property is not the biggest issue. Tech transfers are the biggest issue. Since tech transfers are not illegal in and of themselves there appears to be an impasse. If Trump bans US tech firms from doing business in China, other nations will take our place, but it may break the impasse.
Can China Outlast The US Through Painful Trade War Escalation?
China is expanding while the USA is slowing. Not favorable for a #Trump tradewar victory.
Tariffs Can Be Deflationary
Trump so believes that tariffs are expansionary. But as this author nails it, POTUS fears that maybe it is not so expansionary and seeks the aid of the Fed. Perhaps the Fed will first show Trump that tariffs will not expand the economy before acting.
China PPP, Asian Infrastructure Investment Bank & Powerhouse Economics
Update 2: If Donald Trump does not grasp the economic concept of purchasing power parity he will embarrass himself and our nation. We trail China in ppp and that is a crucial weakness facing the USA in a trade war with China.
Just Getting Started
The markets turned. Generally China growth is risk on. China slowing is proving to be risk off for markets.
Stocks Rally But Fail To Impress As China’s Currency Weakens
The author is looking at the US consumer being helped by the weakening Chinese currency. Good for the consumer. But most American goods can be replaced in the Chinese market. This will rip through the US export business, which had been growing before Trump started screwing around with tariffs. This will likely increase the trade deficit, the opposite of what the smartest man on the planet wants!
Investing Strategies For The Trade War
China has a much larger economy by PPP. Not sure Trump even understands what that is. It could bring his downfall.
Who Is Most Vulnerable In A Trade War?
Mustread article. Since PPP favors China, couple that with China'a larger economy, and we see they can make most of what they need. We certainly cannot make most of what we need.