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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Tighten Those Hatches Further
As China enters a new normal, any hope of serious world recovery diminishes.
Fed Signals Will Break The Economy. Wait Til Trump Finds Out
Correction, Larry Summers.
A First Look At The US-Mexico-Canada Agreement On Trade
#Trump's base really thought he accomplished something, because, apparently, they are only capable of reading headlines. Good for Canada!
Trump Revenge And The Prediction Of A Soft Landing
Update: while #Trump signed a new #NAFTA agreement called #USMCA, it was a compromise, and really won't make POTUS happy in the long run. Perhaps he saw the need to strengthen his hand against China and Europe. Those may end up in compromise too, but with little change in the status of trade in the world. Or a real trade war will manifest itself.
Housing Bubbles Are Universally Destructive
I can't see inflation helping a global economy. It could help housing, but it seems the central banks have written off housing. Still, interesting article. If what you says comes true, it will likely be deflationary over time.
The Basic Flaw In The EU Fiscal Position: The Case Of Italy Today
Good question. A nation that has its own currency has the ability to set monetary policy that fits the sovereign nation. Italy and many Eurozone nations have given up that sovereignty, so that it is too strong a currency for them. Yet it is a weak currency for Germany which gives Germany an unfair world advantage.
Mortgage Rates Highest Since Early 2011: Fed Could Push US Into Recession
The housing market could freeze and as long as stocks go up the Fed seems happy.
US, Canada Set To Reach NAFTA Deal In "Chapter 19" For US Dairy Access Compromise
If autos are not included in this deal it is just Trump show. Canadians likely won't rush to US dairy.
Fed QT Is Bull’s Death Knell
Very interesting article. I think Fed money is created in exchange for bonds, not out of thin air, but the fact that QT is happening at such a rapid pace may mean more than interest rate hikes. The two together are a much stronger dose of tightening. I am amazed that the Fed pulled the trigger quite so quickly. Maybe too quickly.
The Basic Flaw In The EU Fiscal Position: The Case Of Italy Today
Seems like Italy will defend its sovereignty by leaving the Eurozone rather than allow serious efforts at breaking up Italy itself!