“Our problems start with the Federal Reserve. The Federal Reserve is a monopoly and it controls interest rates artificially low, causing people to make mistakes. That’s the basic source. But then on top of that in the housing market we had the Community Reinvestment Act which told investors that they had to loan to risky borrowers, and that was the complication.
HUD contributes to this. FDIC contributes to this. It’s called moral hazard. Everything that we have done over here creates moral hazard. That is, we assure people [...] we’ll take care of everybody. “Just go out and take the risk.” It’s the opposite of the marketplace. And then they have people come along and say, “See, this is the failure of capitalism”. This has nothing to do with capitalism. This is something that started off as interventionism and as being too involved in the economy for the benefit of special interests, but now it’s being socialized out in the open.
We the taxpayers now own the mortgage companies, the insurance companies, and we’re gonna own a lot more. If our car companies need to be bailed out, believe me, it’s gonna happen, they’re not gonna let all our car companies go broke either.
But this will come to an end. The end of this comes when people reject the dollar. And I think we’re getting awfully close to this.”
No related posts.
While the CRA played a role in the current fiasco, the real culprit is a lack of openness and transparency, and phenomenally (and, likely, criminally) irresponsible lending institutions, investment banks, and insurance providers. This short (and rather humorous) slide show on Google Docs says it all, IMO:
Subprime Primer
Additionally, while I agree that truly free market economies are capable of regulating themselves, we don’t have (and NEVER will have) a “truly free” market economy. The key to making a truly free market economy work is to get all world players to adhere to the same rules. For instance, did you realize that S. Korea export 100s of thousands of cars to the U.S. every year while the U.S.’s automobile exports to S. Korea are orders of magnitude less due to the unfair trade policies…agreed to by the Bush Administration?? Stupid. It’s decisions like these which make me feel that I won’t see a truly free worldwide market economy in my lifetime…and it might not happen at all…ever!
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One of the main problems is the Federal Reserve System. “Federal”?
Ha, Ha! The notion that it is in any way federal suggests that it has something to do with the government of the United States; and most people have bought this swill since the banksters originated the FRS in 1913 or thereabouts. Our money system has nothing to do with the United States Constitution. At its root the problem is that our money system is NOT constitutional. One of the powers of Congress is set forth in Article I, Section 8 of the Constitution of the United States–to coin money and regulate the value thereof. Unfortunately, the private banksters stole that
function from Congress long before most of were alive…much to America’s everlasting regret, corruption, and the rapidly approaching bankruptcy of the United States.
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Ron Paul is one of the only honest and intelligent man in the U. S. Congress. Christian Hinckley
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Ron, first of all thank you for being my defacto muse as I’m working very hard in educating myself in these matter. What is going on here is a horrific ‘debasement’ of the U.S. currency and a government that refuses to incentify ‘savings’. Since learning of this economic universe, I’m reminded of the 1920′s when The Reichbank had to create a new currency called the Rentenmark, which was the equivalent of ONE TRILLION marks. This was done to stem off hyperinflation and it worked. The Reichbank was mandated forced into refusing to print anymore money until the crisis abated. Ameica, you have nothing to fear, because as things get progressively worse, you’ll have many leaders like Ron to help us clean up the mess. Ron doesn’t offer himself as a saviour, he simmply offers his service to a country he deeply loves. I don’t agree entirely with his platform but my esteem for his actions is immeasurable. I’m a Canadian who follows a renaissance that can only begin in the U.S. This Renaissance will be defined as a change in paradigm that embraced the values that shaped 21st Century Capitalism and Democracy. The people of this comments board are to be commended.
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I thought Ron Paul was confused when
he said McCain does not offer an alternative.
Now I see he was right, mainstream Republicans have joined with Democrats in
wasting our money on some idiotic worthless paper insurance, mortgage companies! I was OK with the Bear rescue, after all it was not a one sided rescue, but a joint effort with
JPMorgan. But with AIG it’s an outrage!!! And what is coming ahead…what if it only perpetuates the crisis…why should a former
Goldman Sachs chairman be indirectly supporting his former company, now that he is inthe government? He should be ‘handcuffed’ (stripped of power), we need someone more objective!
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Scary times.
Let’s write in Ron Paul.
votenic.com has a write in on their weekly poll.
go there and show your support!
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