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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.

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It Is Getting Serious With POTUS: Deep State Versus Russia Connection

Date: Tuesday, May 30, 2017 6:03 AM EDT

It is now serious what is going on between the people who are pushing out information about POTUS and the White House sensing it is under siege. We are at the point in which two sides are giving out information that sounds convincing to the public. It is now a darkening situation in our government, and that could impact stocks and the stability of the Republic. 

Most people now side with the main stream media as Trump's popularity drops in polls. But, the main stream media (MSM) cannot always be trusted, and research shows that trust of MSM is at an all time low. 

It would not take much for Americans to transfer that lack of trust to support of Donald Trump. It appears that Steve Bannon is now courting favor of the White House. I wrote about how radical he is as he has espoused a libertarian economic agenda on steroids. I said:

 

This is essentially a call for the New Normal on steroids. The problem with this is that it is the opposite of the euphoria pushing the markets up, a strong dollar and higher interest rates! It is the opposite of the Trumponomics analysis given by Wilbur Ross. But Bannon would have to allow the recession that is expected as we are at the end of the business cycle, in order for stimulus to work in its aftermath, because there may not be enough slack in the economy. And Bannon would likely have to turn it into a major depression!
So now, at the end of the business cycle, where there is little slack, that fiscal stimulus could be a big mistake. Steve Bannon appears to understand this in a diabolical way. But for his plan to work the dollar would have to crater and rates would have to plunge and the stimulus would have to be delayed! Millions of people could lose their jobs and a credit crisis of epic proportions would be the result. This would be Bannonomics, not Trumponomics. 

There are dangers to our political and financial system that could be real here. I view Steve Bannon as a dangerous guy simply based on what he has said in the past. Draining the swamp, if there is a swamp, could be a cure worse than the disease. If it is applied to our economic situation, we could face the mother of all credit crises, because of a man who does not think credit depressions are that bad. That is essentially the Austrian Economic School's position and that is a school that comes from the Libertarian movement. 

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