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Old 06-15-2011, 03:12 PM
 
Location: PA
5,562 posts, read 5,482,564 times
Reputation: 1961

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Ron Paul
U.S. House of Representatives
July 16, 2002 way before the anyone knew what was really going on.


“Mr. Speaker, I rise to introduce the Free Housing Market Enhancement Act. This legislation restores a free market in housing by repealing special privileges for housing-related government sponsored enterprises (GSEs). These entities are the Federal National Mortgage Association (Fannie), the Federal Home Loan Mortgage Corporation (Freddie), and the National Home Loan Bank Board (HLBB). According to the Congressional Budget Office, the housing-related GSEs received $13.6 billion worth of indirect federal subsidies in fiscal year 2000 alone.
One of the major government privileges granted these GSEs is a line of credit to the United States Treasury. According to some estimates, the line of credit may be worth over $2 billion. This explicit promise by the Treasury to bail out these GSEs in times of economic difficulty helps them attract investors who are willing to settle for lower yields than they would demand in the absence of the subsidy. Thus, the line of credit distorts the allocation of capital. More importantly, the line of credit is a promise on behalf of the government to engage in a massive unconstitutional and immoral income transfer from working Americans to holders of GSE debt.
The Free Housing Market Enhancement Act also repeals the explicit grant of legal authority given to the Federal Reserve to purchase the debt of housing-related GSEs. GSEs are the only institutions besides the United States Treasury granted explicit statutory authority to monetize their debt through the Federal Reserve. This provision gives the GSEs a source of liquidity unavailable to their competitors.

Ironically, by transferring the risk of a widespread mortgage default, the government increases the likelihood of a painful crash in the housing market. This is because the special privileges of Fannie, Freddie, and HLBB have distorted the housing market by allowing them to attract capital they could not attract under pure market conditions. As a result, capital is diverted from its most productive use into housing. This reduces the efficacy of the entire market and thus reduces the standard of living of all Americans.
However, despite the long-term damage to the economy inflicted by the government’s interference in the housing market, the government’s policies of diverting capital to other uses creates a short-term boom in housing. Like all artificially-created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been had government policy not actively encouraged over-investment in housing.
Perhaps the Federal Reserve can stave off the day of reckoning by purchasing GSE debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary but painful market corrections will only deepen the inevitable fall. The more people invested in the market, the greater the effects across the economy when the bubble bursts.
No less an authority than Federal Reserve Chairman Alan Greenspan has expressed concern that government subsidies provided to the GSEs make investors underestimate the risk of investing in Fannie Mae and Freddie Mac.
Mr. Speaker, it is time for Congress to act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bail out investors misled by foolish government interference in the market. I therefore hope my colleagues will stand up for American taxpayers and investors by cosponsoring the Free Housing Market Enhancement Act.”
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Old 06-15-2011, 03:14 PM
 
2,409 posts, read 2,941,274 times
Reputation: 2031
Thomas Jefferson was the first

Ron Paul wasn't the only one he was just the most vocal in most of the US government. Lots of well informed people have been writing about the collapse of the US for decades now. Don't know why everyone thinks Ron Paul has the monopoly on this. The Federal Reserve has been around for almost 100 years.
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Old 06-15-2011, 03:16 PM
 
Location: PA
5,562 posts, read 5,482,564 times
Reputation: 1961
Quote:
Originally Posted by SoCalCroozer View Post
Thomas Jefferson was the first

Ron Paul wasn't the only one he was just the most vocal in most of the US government. Lots of well informed people have been writing about the collapse of the US for decades now. Don't know why everyone thinks Ron Paul has the monopoly on this. The Federal Reserve has been around for almost 100 years.

He doesnt have a monopoly but for the last 30 years he has been working in our government to change it. Instead government has been creating the bubbles dont you think its time we had a leader in washington (IE President) who knows how the economy works and doesn't.
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Old 06-15-2011, 03:21 PM
 
Location: OCEAN BREEZES AND VIEWS SAN CLEMENTE
19,894 posts, read 17,784,228 times
Reputation: 6463
Quote:
Originally Posted by LibertyandJusticeforAll View Post
He doesnt have a monopoly but for the last 30 years he has been working in our government to change it. Instead government has been creating the bubbles dont you think its time we had a leader in washington (IE President) who knows how the economy works and doesn't.


Yes i surely do. Tell ya what, when you find one, let us all know!
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Old 06-15-2011, 03:25 PM
 
Location: PA
5,562 posts, read 5,482,564 times
Reputation: 1961
Quote:
Originally Posted by california-jewel View Post
Yes i surely do. Tell ya what, when you find one, let us all know!

I did in 2008 and you voted in Obama and Bush's for the last decade.
Enjoy!!
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Old 06-15-2011, 03:29 PM
 
2,409 posts, read 2,941,274 times
Reputation: 2031
Quote:
Originally Posted by LibertyandJusticeforAll View Post
He doesnt have a monopoly but for the last 30 years he has been working in our government to change it. Instead government has been creating the bubbles dont you think its time we had a leader in washington (IE President) who knows how the economy works and doesn't.
Oh trust me I love Ron Paul and I voted for him in 2004, 2008 and will again in 2012. He's my hero seriously. The guy is our last hope but the American people are by far some of the stupidest people on earth.
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Old 06-15-2011, 03:36 PM
 
Location: Flippin AR
5,512 posts, read 5,034,043 times
Reputation: 6236
Amazing that when you have someone in Congress who had a REAL job--a doctor, and former Air Force Officer--instead of being a lawyer, you get logical and sane views instead of the grow-grow-grow Government of the elitist political class who never worked a day in their lives. Note: Rand Paul, Ron Paul's son, is also a doctor.

I we had listened to Ron Paul from the beginning, we wouldn't have destroyed our manufacturing sector and Middle Class with NAFTA, bankrupted the most prosperous nation ever with multiple idiotic foreign wars, wasted trillions and given immense abusive power to the Federal government in the unwinnable Drug War, gutted our work force by allowing open-door immigration, devalued our dollar and therefore stolen the savings, wages and investments of ALL Americans, etc., etc.

The key point here is that Ron Paul is the ONLY Presidential candidate who opposes the countless misguided and destructive policies of government that have brought us to the point of collapse. Every other candidate, whether Democrat or Republican, supports Free Trade and endless foreign wars and ever-growing government and constantly increasing spending and borrowing. We may already be past the point of no return--but at least we can stop our head-long rush over the cliff.

Vote Ron Paul, or vote "Good Job!" for the current policies of Washington and a never-ending Depression, followed by total collapse. Ignore the Media slander that tries to portray Ron Paul and Libertarians as too radical, because they are in effect saying that Thomas Jefferson and the Founding Fathers were too radical.

Your choice, Americans. Libertarians offer a REAL change, instead of the false promise of Hope and Change we recently fell for.
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Old 06-15-2011, 03:38 PM
 
7,885 posts, read 9,784,396 times
Reputation: 3233
So what, so did a lot of other people. Everyone knew it was coming and wanted to be the last one to cash out before it happened.

Most waited too long, out of greed.
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Old 06-15-2011, 03:39 PM
 
44,780 posts, read 23,318,962 times
Reputation: 27239
Lots of people realized that housing was a bubble and that eventually, it would burst. Interestingly enough, the bankers, brokers, etc. actually charged with running the economy (and lavishly compensated for doing so, one might add) claimed everything was just hunky-dory right until the moment when the wheels came off.

ETA: Curse you, Strel, and your fast typing.
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Old 06-15-2011, 03:40 PM
 
2,409 posts, read 2,941,274 times
Reputation: 2031
Quote:
Originally Posted by NHartphotog View Post
Amazing that when you have someone in Congress who had a REAL job--a doctor, and former Air Force Officer--instead of being a lawyer, you get logical and sane views instead of the grow-grow-grow Government of the elitist political class who never worked a day in their lives. Note: Rand Paul, Ron Paul's son, is also a doctor.

I we had listened to Ron Paul from the beginning, we wouldn't have destroyed our manufacturing sector and Middle Class with NAFTA, bankrupted the most prosperous nation ever with multiple idiotic foreign wars, wasted trillions and given immense abusive power to the Federal government in the unwinnable Drug War, gutted our work force by allowing open-door immigration, devalued our dollar and therefore stolen the savings, wages and investments of ALL Americans, etc., etc.

The key point here is that Ron Paul is the ONLY Presidential candidate who opposes the countless misguided and destructive policies of government that have brought us to the point of collapse. Every other candidate, whether Democrat or Republican, supports Free Trade and endless foreign wars and ever-growing government and constantly increasing spending and borrowing. We may already be past the point of no return--but at least we can stop our head-long rush over the cliff.

Vote Ron Paul, or vote "Good Job!" for the current policies of Washington and a never-ending Depression, followed by total collapse. Ignore the Media slander that tries to portray Ron Paul and Libertarians as too radical, because they are in effect saying that Thomas Jefferson and the Founding Fathers were too radical.

Your choice, Americans. Libertarians offer a REAL change, instead of the false promise of Hope and Change we recently fell for.
Look at this celebrity like worship of Mitt Romney........oooh aahhhh he's so Presidential.......look at him........he looks so good........he speak so well..........mmmmmmmmmm. His first job was with Wallstreet with Bain Capital. Its not just the lawyers ruining our government it's the bankers, the wallstreet hacks and otherwise financiers. Romney is nothing but a dressed up suit, a WallStreet hack if there ever was one. He doesn't know anything about running an economy or running a country. All he knows how to do is stick his hand in the next guy's pocket and make funny money.
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