Thursday, May 2, 2019

Learn Economics Topic Three

3. Great Recession causes:

I created this chart which shows the Great Recession Started when LIBOR rates became greater than fixed swaps rates. Banks could not pay out interest as the tables were reversed!

The Fed knew LIBOR was rocketing higher in yield, yet did little to stop it until the LIBOR rate exceeded the Swaps rate.

The Fed tightened or ignored crisis warnings. LIBOR destroyed subprime, but the Federal Reserve Bank clearly deepened the Great Recession by inaction or by active policy.

The Fed put the CP market at massive risk, then ignored the signs that it had done so. The Fed is culpable for the housing bubble and Great Recession. And there is proof this was the case.

Did the Fed Want the Houses Back for Wall Street?

HR 1424 providing for use of excess reserves to buy bad paper at TBTF banks, was introduced into the House of Representatives on 3/9/2007, and the subprime crash took place in the summer following.

LIBOR Triple Damages Loom; Chart Shows How the Banks Won Bets

The biggest banks in the world are in real trouble. They may have won too much when they won their derivatives bets. At issue is whether these big banks manipulated the LIBOR rate downward. A chart explains it all.

The Lowdown Federal Reserve Bank

The Fed made the Great Recession far worse on purpose but says it was all about providing accommodation!


Articles are exclusive to Talkmarkets if they are published on the site before being published elsewhere for 48 hours. Most of my articles on Talkmarkets are written to be considered "evergreen", or intended to be fresh articles even as time passes. Most subjects I have written about have proven to lend themselves to considerable lasting effect.

While I have supported some economic policy, it turns out that racism was a strong motivator for some of those policies. I oppose racism in all forms and prove my commitment by rejecting anything other than the Westphalia or Westfalia view of sovereignty, which is mutual respect for all nations by all other nations. 

Perverse sovereignty is as bad or even worse than excesses in globalization which gives banks power over governments. Both are ultimately bad for America. This blogger supports free trade and opposes a border tax. But government should be stronger in order to rein in big banks who abuse the people with toxic loans.

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