"More inflation is, however, never the answer to inflation.
The truth is that business involves risk, and businesses that miscalculate risk should be liquidated, so their assets can be reallocated to businesses that correctly judge risk and make profits.
Instead, the Fed has injected $64 billion into the jittery markets, effectively amounting to a bailout that keeps these malinvestments afloat, but eventually they will become the undoing of our economy."
-Ron Paul August 2007
August 21, 2007
Ron Paul on the Mortgage Meltdown, Bond Market Blowup and Incompetent Federal Reserve
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26 comments:
No one who speaks the truth this clearly can get elected.
Sadly.
SOME CRASH!!!!
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SENATOR DODD WAS ON THE NEWS AND ALREADY THEY ARE TALKING ABOUT HELPING OUT THE MORTAGES.
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HE SAID THEY WILL NOT LET HOUSEING PRICES DROP.
.
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GUESS YOU LOSE AGAIN.
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RENTERS!
Here's an excellent article on the topic. They mention how Volcker would have been a man and stepped up to the plate, instead of being a wimp as Greenspan / Bernanke have demonstrated thus far:
http://tinyurl.com/3xsust
Right on! I haven't heard anything so logical and simple in a long time.
so why is gold and silver tanking when the fed is inflating so much?
Hey dopes, learn to spell. HOUSING, not HOUSEING. MORTGAGE not MORTAGE. You're a moron.
SENATOR DODD WAS ON THE NEWS AND ALREADY THEY ARE TALKING ABOUT HELPING OUT THE MORTAGES.
.
.
HE SAID THEY WILL NOT LET HOUSEING PRICES DROP.
.
.
GUESS YOU LOSE AGAIN.
.
.
RENTERS!
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Ah yes, Connecticut Senator Chris Dodd, chairman of the Senate Banking Committee.
You are very foolish to place your faith in Chris Dodd. If Chris Dodd were really as powerful as you are wishing he is, the recent hedge funds collapses would not have happened, "top-conditioned athlete" Countrywide would not be having layoffs and on the verge of bankruptcy, the central banks would not have injected $300 billion of liquidity into the system......are you getting this?
Do you have two brain cells to rub together?
so why is gold and silver tanking when the fed is inflating so much?
Unlike a lot of things right now, gold and silver are HIGHLY LIQUID and are being sold to try to offset the sickening losses across the financial universe.
My gosh dopes, you must be right.
I have 100% confidence that I can believe everything Senator Dodd says. I have his personal guarantee that my house's price will not go down.
I'm so relieved. I'm sure that my mortgage broker will take Senator Dodd's assurances into account when it comes time to refinance my McMansion.
If Chris Dodd is so powerful, maybe he can get back the many billions of hedge fund losses that have occurred in the last couple of weeks, and restore the massive stock losses of the home builders.
Ha.
Chris frickin' Dodd.
Dopes,
Do you actually think Senator Dodd and the rest of the failures in Congress are going to be able to prop up housing prices? Newsflash my friend, he is saying what he thinks the debt-addicted morons want to hear. Any bailout will help the banks, not debt slaves like yourself.
I hope Congress does try to help housing though. That will just make the crash that much worse!
PS, Why would someone who is so confident in the health of the housing market constantly troll on a bubble web site? Scared?
DOPES said...
SOME CRASH!!!!
.
SENATOR DODD WAS ON THE NEWS AND ALREADY THEY ARE TALKING ABOUT HELPING OUT THE MORTAGES.
.
.
HE SAID THEY WILL NOT LET HOUSEING PRICES DROP.
Dopes, you are too funny... you're one fo those who'll be riding the vurve, all the way down. I can already see your future post as : What's your problem all you sorry renters? The government is now rationing food and providing food stamps to all homeowners who lost their shirt. You silly renters you get no foodstamps!
Hey dopes, learn to spell. HOUSING, not HOUSEING. MORTGAGE not MORTAGE. You're a moron.
It's not that we are morons, we just have to type fast and loose so as not to get caught by the boss!
Anonymous said...
Hey dopes, learn to spell. HOUSING, not HOUSEING. MORTGAGE not MORTAGE. You're a moron.
August 21, 2007 8:15 PM
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When an argument can't be refuted, spelling mistakes are attacked.
Dodd and Hitlery are in bailout mode. Dodd and Hitlery run Congress along with Nancy and Harry who represent California and Nevada. Hmmm NY, CA and Nevada, NY, CA and Nevada, how are they related to housing? Oh I know, they are the areas that shot up the most in the boom. And gee what do you know the leaders of the Democunts hail from NY, CA and Nevada. And the Democunts get to decide if and when a bailout will be coming.
Put 2 and 2 together moron and it equals bailout.
That's what you get when you vote for socialists....socialism. Next time don't vote for them.
Idiot.
well dopes does have the power the federal reserve and many gubbermint shills on his side.
if its possible to prop housing up more they will try.
more tax breaks, raise GSE caps, allow FHA zero down up to 800k! its endless what they could do to make housing 'more affordable'(read:do opposite)
Funny, the same Republicans who keep bitching about socialism are now embracing the socializing of finance. Now these Republicans want the government welfare to bail them out. Bunch of hypocrites!
Even if the fed cuts rates, as is likely, we are still going to have a big housing bust. In inflation-adjusted dollars, housing prices are still going to come way down.
Of course, in some areas of the country the decline will be relatively mild, just as the boom was. In other areas it is going to be total carnage.
In CA, where I live, there have been big declines in the central valley (think Sacramento) and it's going to get much worse. In the Bay Area, prices are relatively flat (so far).
People should understand that the housing prices are going to lag the credit crunch. First comes tight credit. Then come the forced sales and foreclosures. There go the comps. And down go the prices. What we have seen in housing prices so far is just the boom dying out. The real *crash* is still to come.
Fed isn't going to cut
Lacker said Tuesday that inflation remains too serious a threat to cut the federal funds target rate. "Financial market volatility, in and of itself, does not require a change in the target federal funds rate, in my view," said Lacker in a speech to risk managers in Charlotte, N.C. "Interest rate policy needs to be guided by the outlook for real spending and inflation."
http://www.forbes.com/markets/2007/08/21/markets-treasuries-closer-markets-equity-cx_af_0821markets33.html
Who is this 18%? They must be dumb!
"I haven't heard anything so logical and simple in a long time."
well, Ron Paul knows about business cycles and the man is owner of $400 million in congressional earmarks!
I love the man to death but nothing's cut and dry!
its ok desperate realtors are still trying to PUMP UP the market.....Its to late baby now!!!
Ron Paul nails it!
There is no short term painless solution to this fiasco--The FED is being led by the balls by the panicked idiots, at the expense of the long-term health of our country.
The market MUST correct itself!! Without a major price correction in the housing market soon, we will end up just like Japan, in a painful 10 year ride down.
DENIAL--It's more than just a river in Egypt, Mr. Bernanke.
rcochran said...
so why is gold and silver tanking when the fed is inflating so much?
Unlike a lot of things right now, gold and silver are HIGHLY LIQUID and are being sold to try to offset the sickening losses across the financial universe.
August 21, 2007 8:40 PM
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You got that right. There is nothing that I know of that is more liquid than USA 90% silver coins.
Put 2 and 2 together moron and it equals bailout.
That's what you get when you vote for socialists....socialism. Next time don't vote for them.
Idiot.
August 21, 2007 9:42 PM
Where are they gonna get the money, twinkie brain? Look at the numbers! They can't print us out of this one without triggering full blown hyperinflation. Sure a few million people losing their homes is bad for votes, but who wants to be the guy blamed for $10,000 gallon of milk? It's all talk, and a setup to bailout their big bank contributors.If you think you're going to be bailed out, you're about as bright as a bowl of sea monkeys.
so why is gold and silver tanking when the fed is inflating so much?
Because like all other markets, it is manipulated. If the price gets too high, the jig is up for the central bank Ponzi scheme. Watch what happens to the price on a daily basis. At 9:00 am NY time, gold gets hammered. They are going to try to keep it under $700 for as long as they can. My guess is that their tricks of selling to bullion banks & selling futures contracts are having less & less of an effect. I think that is why the uptick rule was changed so they can relentlessly short sell the hell out of anything that would negatively affect the price of gold. Lets face it, our Goldman Sachs Treasury & FED have been rigging the game for years. I think they sense that their reign is coming to an end, so this is just a desperate move to maintain control.
I hope you're wrong rcochran...but you're probably right. Just as right as Paul's message. Man, this guy has a way of cutting right through the BS to the heart of the problem.
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