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Ron Paul has nothing good to say about the Wall Street bailout plan

'We don't have the money,' says Ron Paul about the Wall Street bailout plan. Rep. Ron Paul (R-Texas) may no longer be running for president, but that doesn't mean he slunk away quietly and is simply tending to his re-election bid (though there may not be much to do, since he's running unopposed).

The free-market, small-government libertarian had plenty of harsh words about the Bush administration's proposed Wall Street bailout plan when he appeared on CNN's "Late Edition" today.

WOLF BLITZER ("Late Edition" host): What do you say to the president who wants you and your fellow Republicans and Democrats to quickly pass this $700 billion bailout package?

PAUL: Well, I think that's a mistake because we don't have the money. But that doesn't mean you have to do nothing. I mean, we could reform the system. We could return to sound money. We could balance our budget. We could change our foreign policy. We could take care of our people at home. We could lower taxes.

There's a lot of things that we can do. But the worst thing that we can do is perpetuate the bad policies that gave us this trouble in the first place, and that is that we no longer, over the last quite a few decades, believed in free-market capitalism. Capital is supposed to come from savings. We're supposed to work hard and save.

As a matter of fact, the Chinese work hard, right now, and they save, and they're buying up the world. But we borrow and spend and consume, and now it's caught up to us and it's undermining our whole system. ... So this $700 billion is not going to do it.

Paul also argued that ...

... contrary to the White House's contention, this plan does not help Main Street.

"This is Wall Street in big trouble and sucking in Main Street, now, and dumping all the bills on Main Street. ... And you can't solve the problem of inflation, which is the creation of money and credit out of thin air, by more money and credit out of thin air, and not changing policy. We have to change basic policy.

"Yes, it would be painful, but it wouldn't last so long. What they're doing now, they're propping up a failed system so the agony lasts longer. They're doing exactly what we did in the Depression."

"So, yes, there are going to be losses, but everybody lived beyond their means when the prices of houses were going up. Nobody cared about it. They kept borrowing against it. Oh, yes, that was fine and dandy. Everybody was making money, and the owner of the home kept borrowing and living beyond their means. Now they have to live beneath their means.

"What the government is doing now -- and this new program is trying to prop up prices. You want the price structure to adjust. You want the price of houses to go down. You don't want to fix the price of housing. You can't price-fix. We've had too much of that.

"We need a market economy. We need to believe in ourselves. We need to believe and understand how the economy got us -- how the government got us into this mess. And believe me, it wouldn't be that tough. It would be a bad year. But, this way, it's going to be a bad decade."

Paul had nothing but disdain for Republican presidential nominee John McCain's suggestion to create a new government entity to deal with the crisis, calling it "just more of the same, more government, more programs, more spending, more regulations, trying to prop up a system that has been undermined."

He did say that Democratic candidate Barack Obama "has a pretty good grasp on how to attack this politically and go after McCain, but he doesn't have any answer. He's not talking about the Federal Reserve system. He's not talking about balanced budgets. He's not talking about bringing troops home from Afghanistan."

And, as Paul has said before, his choice for president will be "neither one of those two. They don't offer any alternatives."

-- Leslie Hoffecker

Photo credit: Associated Press / J. Scott Applewhite

 
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Wish More People Would Have Debated Ron Paul Rather Than Dismissed Him.


Debate Is The Distillation Of Reality.


Fed Reserve Data On Borrowing

http://research.stlouisfed.org/fred2/fredgraph?chart_type=line&width=1000&height=600&preserve_ratio=true&s[1][id]=BORROW


The Dominoes Are Set To Fall.


Stock Rallies Are Manipulated At This Point.


President's Working Group on Financial Markets

http://en.wikipedia.org/wiki/Working_Group_on_Financial_Markets


February 23, 1997 Original Article on the Plunge Protection Team – Red Book of The SEC and the Mission

http://www.washingtonpost.com/wp-srv/business/longterm/blackm/plunge.htm


Both Presidential Candidates Are On The Take:

http://www.nytimes.com/2008/09/10/us/politics/10fannie.html?pagewanted=1


After The Election; Dibold Baby; Things Are Going To Get Crazy.

Is putting 20% down payment and paying 6.5-7.5% interest on a 30 year mortgage considered to be constrained credit? If it does, I must agree with Phil Gramm - we are a nation of whiners. I still get 3-4 credit card offers a week and a friend of mine just got a 30 year fixed mortgage with interest rate around 6%.

Paulson, Bernanke & Co. Should just let the market work. The less they do the better. Nothing - would be just perfect.

Do they think that Weimar Republic style economy is better then Great Depression?

What is this obsession with Great Depression?
During Great Depression many countries had it much worse then United States when their economies were run by “go-getters” like Paulson and “esteem scientist” like Bernanke who knew better then the market. And the more government intervention there was the worse the countries fared.
Maybe our "esteem scientist" should also study a history of such a wonderful institution as Soviet GOSPLAN and learn how "well" government can regulate ones economy.

If Paulson is concerned that sound businesses and high quality borrowers will be denied credit, he should ask Congress to create a facility that helps to provide credit to the affected borrowers which will not be a total loss to the taxpayers unlike his decision to bail out his buddies.
Instead he decided to squander taxpayers money on the toxic garbage, no one in the world wants to buy at current prices, encouraging and rewarding the behavior which got us into this mess in the first place. What a bunch of lies, I feel like I am back in the USSR. Just wondering if it’s going to take 75 years this time and if the slogan is going to be ‘Mortgage non-payers of the world - unite!’ ?

Ron Paul predicted this a long time ago. The Federal Reserve Created this problem. It's time to abolish the Fed.

Folks, we can whine all we want here, but unless we are out there talking to our friends and neighbors, sticking our necks out in barber and beauty shop conversations, and speaking up at the church social, nothing is going to change. If you want to stop this, you have to take the time to pick up the phone and call your Senator and Congressman. You have to make the time to write a letter to the editor. You have to help those around understand the exact nature of this "crisis" (read "trillion dollar con job") and show them how to act against it with you. Nothing short of your children's future lives in a free country depends on it.

Either vote them out or hang the traitors.

They stole our rights. They voted to give the President power he should not have. They involved us into an endless war that is bankrupting us..

AND NOW THEY PRIVATIZE PROFITS AND SOCIALIZE DEBT.

I hope they burn in hell for this.

Here's a novel idea on how to prevent this mess from recurring: require 20% down payment for a home loan. Oh wait, that's how it used to be, until it was deemed "discrimination" by the liberals/socialists.

The dashing hope that we actually have a candidate that knows whats going on (like Ron Paul) is the number one reason we need a multi-party political system! The two-party system is allowing our nation to fall to pieces because true independents that GET our problems and actually HAVE solutions will never win the political support of the Dems-Repubs!

Multi-party system now or we'll sink!

@Julie, Either they take their hit now, or they can take a bigger one later. The last thing we need is more Gov. intervention. They are the ones who created the problem in the first place. The sooner we realize this, the faster we can fix the problem. Dr. Paul uses the analogy of a drug addict with his drugs, you can keep giving him his fix, but sooner or later the patient dies, and that would be our dollar. With more printing of money, they are creating more inflation and everything WILL get more expensive. Then you will see more people losing their homes and in tent cities. Don't think for a minute that the government can fix this because they can't. Google "Money as Debt"

Fiat economies are based on debt, not value. The Fed has the legal right to take all debt and pretend it is a credit. Then they take that credit and create digital or fiat currency. This is how money is created. Without debt there is no money. All fiat systems have a predictable lifespan. Our's is declining and is close to the parabolic drop. Saddam's WMD was no other than selling his oil for euros, not dollars. If he had succeeded, our dollar would have fallen big time. The euro would have been the reserve currency of the world in short time, replacing the dollar. Well we stopped that. Now we have our eyes on the oil. The goal is to make sure the oil is bought with American dollars. Now my criticism of Ron Paul is that he never tells his people how money is made in simple language. He says there is nothing good about the bailout but never gives solid reasons why. He needs to come out and plainly say that we need to abolish the FED and create a value based money system. You never hear him say that. He is always vague. I hate his speeches for that reason. But if he said that, I am sure he would be quieted. I think he has some healthy fear. But that being the case, he doesn't say anything real. There is no fixing the fiat system we have. So the powers are holding it up. The only real alternative is a value based currency. C'mon Ron Paul, get with it. How do we get there? Say something that means something for real change we so desperately need.

The dashing hope that we actually have a candidate that knows whats going on (like Ron Paul) is the number one reason we need a multi-party political system! The two-party system is allowing our nation to fall to pieces because true independents that GET our problems and actually HAVE solutions will never win the political support of the Dems-Repubs!

Multi-party system now or we'll sink!

Not Only that, both of the two parties support the north american union which will destroy american sovereignty
and that makes me sick
Fuck Mcbama.

The dashing hope that we actually have a candidate that knows whats going on (like Ron Paul) is the number one reason we need a multi-party political system! The two-party system is allowing our nation to fall to pieces because true independents that GET our problems and actually HAVE solutions will never win the political support of the Dems-Repubs!

Multi-party system now or we'll sink!

Not Only that, both of the two parties support the north american union which will destroy american sovereignty
and that makes me sick
F*ck Mcbama.

As one of the originators (but probably not the only one!) of the Wall St. vs. Main St. perspective on the economy, I am gratified to see Dr. Paul voicing the same terms.

Of course, he's right, and not because I thought of it first, but because it is the crux of the economic issue, and he's always understood it. "Wall St. vs. Main St." is just a popular summary that people instinctively get.

We need to get our economy back into production of goods and services instead of trading debt and consuming goods. That production is in the factories on Main Street and the fields outside town, and the debt trading that is ruining America is on Wall Street. Until we get out production acts together, we're screwed.

WRITE IN RON PAUL for President.

It's not a throw away vote. Its a vote in good conscious. No matter what your position is on foreign policy or domestic policies "IT'S THE ECONOMY, STUPID"; because this problem is big enough to take us all down.

So, when you walk into that booth this November, bring a pen and sign your personal declaration of independence from this 2 party circus. WRITE IN: Dr. Ron Paul of TX.

I'm pleased that Dr. Paul is getting some air time, but I'm not sure of the media's motives. I'm more inclined to think it's because Dr. Paul is "against" the norm. That is, it provides a little controversy.

Regardless, at least it gives us a talking point when spreading the message. "Did you see Dr. Paul on so and so last night? He knows his economics... he has a plan"

Thanks, LA Times. I don't know if you inteneded for this to be a positive thing, but it's going to help our cause.

Too little too late. We were laughed at for supporting Ron Paul and only now is he getting mainstream press? Ridiculous. We get what we deserve. Write your congressman and demand economic reform. That's all there is now.

Solution? Send a message to Washington to show them who's really is in control...pull out every cent you have in the bank and sit on your butt for 1 complete month and watch the entire system screech to a halt. Then don't pay your personal income tax, you don't have to it's not mandatory you (we've) been lied to for decades! Stop being a walking, working ATM for the government. If the U.S. was a business we'd have been out of business decades ago. Remember it's 'We the People..."

P.S. Ron Paul isn't there any way you can be put on the ballot for November???? I want my kids to have a life.

Love Ron Paul its sad what is happening even our 5 reps in oklahoma and two senators wont stand up to the federal reserve. They suck up to this banking cartel All you can do is educate people the best you can. Maybe when it gets bad enough the people will rise up and vote them all out of office. Even Tom Coburn who is probably the best record voter for the economy in oklahoma will not stand up like ron paul and senator inhoffe is a bought off money lover. My district #4 rep Tom Cole is paid off by the tribes and big boys in norman his claim to fame is getting toby keith recognition on capitol hill for his singing to the troops-That makes me feel real confident. Keep up the good work Ron Paul your the only candidate that i will send money to and I love the emails that i get on the local people that you support and support you that are looking to run in november - I will try my best to support any candidate (NO INCUMBENT) that supports your goals and stands up to this corruption.

Love Ron Paul its sad what is happening even our 5 reps in oklahoma and two senators wont stand up to the federal reserve. They suck up to this banking cartel All you can do is educate people the best you can. Maybe when it gets bad enough the people will rise up and vote them all out of office. Even Tom Coburn who is probably the best record voter for the economy in oklahoma will not stand up like ron paul and senator inhoffe is a bought off money lover. My district #4 rep Tom Cole is paid off by the tribes and big boys in norman his claim to fame is getting toby keith recognition on capitol hill for his singing to the troops-That makes me feel real confident. Keep up the good work Ron Paul your the only candidate that i will send money to and I love the emails that i get on the local people that you support and support you that are looking to run in november - I will try my best to support any candidate (NO INCUMBENT) that supports your goals and stands up to this corruption.

People who advocate writing their representatives are WASTING THEIR TIME. They're bought out by the fractional reservists at the trilateral commission and the council on foreign affairs, both of which are dominated by Rockefeller, who himself is a pawn of the Rothschild family.

The real solution is to start printing YOUR OWN MONEY, and actually respecting it. Look up how Britain did this using "tally sticks" from 1100 to 1854. Look up how even we, as citizens of our nation, did this in the past with the Greenback system.

I envision a system where anyone at all can print their own money (eliminating a whole class of crimes in the process), provided they submit their serial numbers to the treasury department. This is analogous to how King Henry I (no relation to the CEO of USA) took a single piece of wood and split it into two identical halves, with one being issued as currency, and the other as PROOF that it was valid currency. Using electronic mechanisms, this is equivalent to using public-key encryption.

Anyway, the idea here is that, eventually, taxes will be paid with this money, which the treasury dept. then cross-references with its own records. For each note they receive, they compare the printed serial number against their records. If they match, the note is potentially REMOVED from circulation, never to be seen again (this cannot be a problem, since citizens can just print their own money, remember!). The paper can then be recycled, for example. Otherwise, it can be respent into the economy to keep it into circulation, if it is deemed an appropriate action at that time.

The result is that the federal government has the right to tax so as to keep the amount of cash in circulation reasonable (and thus, the value of the money stable), and the right to authenticate money itself (thus preventing "forgery"), but it CANNOT generate its own cash as such (however, individual representatives and employees of the government may, as a natural right of all citizens. In this way, all public functions can be paid for, thus eliminating the majority of the need for philanthropy).

Putting the power of printing money in individual hands makes fractional reserve banking utterly obsolete, without having to back the currency with ANYTHING at all (since taxation removes currency from circulation, the amount of cash is thus controlled). All that is needed to make this system work is the ability to authenticate a note against the Federal treasury, which modern-day Internet technology enables trivially.

I watched Dr. Paul early on and felt he had some key ideas to consider.

I'm now an Obama supporter and I agree with Dr, Paul's take on Obama's political skill. But I too wonder about his abruptly signing on to a bail out that at the very least saddles the next administration with the largest debt obligation in history. I'm tempted to believe that Dems will add poison pills that will kill the Bush Treasury and Fed Chairman proposals, requiring Wall Streeters to solve their own problems until after the November election.

It might not be as straight up as Dr. Paul, but it may buy taxpayers and their representatives the time they need to deliberate over an answer that makes more sense than printing and throwing almost a trillion dollars in paper at the problem.

The economists and money market gurus of the world must be very pleased with their record in the wonderful deregulated market in which they operate. Basically they just gamble with other people's money and pay themselves a fortune to do it.

Why secure the bank accounts and assets of these failed gamblers with $830 billion when that amount of money would be put to much better use by honest and competent people working in manufacturing, science or medicine.

I agree no bailout for the greedy CEO run companies let congress pay for it out of their own pockets not the American Taxpayers let thew people be heard NO to this bailout. What nerve these goverment officals & wall street CEO's have asking for help on the way down. They want to collapse the dollar with their distructable debt. In GOD WE TRUST! NOT WALL STREET & BANKERS !!

It's 20/20 now
Don't worry our troops are back home and will police the soup line for cutters and double dippers
Thanks to NSPD-51 ..............Print that LA Times no one else is so you can have a BIG SCOOP End of Posse Comitatus
NSPD-51 http://www.whitehouse.gov/news/releases/2007/05/20070509-12.html
Brigade homeland tours start Oct. 1 http://www.armytimes.com/news/2008/09/army_homeland_090708w/


Please STOP this madness!!! This is the end of democracy and the free market. These people, Paulson, Bernanke, Bush and his administration have to be prosecuted, fired and hold them responsible for the crash of the economy, democracy and the wars around the world. PLEASE call your representatives, US senate to oppose this bail out! Go to this link and read the text, email or call!!!
http://www.campaignforliberty.com/

The Wall Street Financial Crisis
"A tart dish with a hint of it was only a matter of time"
Serves 301,139,947
Submitted by Ryan from Spilling Buckets

Here are the 11 disastrous ingredients that have been thoroughly mixed, baked, and are ready to be served to each and every one of us. Check the cupboards, tie that apron, wash your hands and let's begin.

Add 6 Cups - Unprecedented New Wealth: In 2000 the sum of all the world's savings was around $36 trillion dollars. It had taken several hundred years to get to that point. In 2006, six years later, that global pool of money was now almost double at $70 trillion (many reasons but mainly countries that were once poor now made a lot of money selling TVs and oil to us: China, India, Saudi Arabia etc, and most of them banked it). All this money came with an army of nervous and twitchy managers looking for very safe ways to make that money grow.

Add 1 tsp. - Alan Greenspan: You know that safe investment all those nervous people invested in, that was mainly U.S. Treasury Bonds.....until one speech started a shift. (I quote directly from Greenspan and the This American Life transcript on this one)

Alan Greenspan: The FOMC stands prepared to maintain a highly
accommodative stance of policy for as long as needed to promote satisfactory economic performance.

Adam Davidson: You might not believe me, but that little statement: that is Central Banker speak for “Hey, global pool of money -screw you.”

Alex Blumberg: Come on, that’s not what he said

Adam Davidson: It is! I speak central banker and that’s what he’s saying.

What he’s technically saying is he’s going to keep the Fed Funds rate at the absurdly low level of one percent. It tells every investor in the world: you are not going to make any money at all on US treasury bonds for a very long time. Go somewhere else. We can’t help you.
Prepare 1 Cup Housing Bubble, warm on stove: Now we have all this money that's sitting around with nowhere to go. It didn't take long for the next best thing to catch everyone's attention: U.S. residential mortgages. Here were these low risk and high return investments that everyone just knew couldn't go down in value.... it had the world salivating, but, there was one problem. The last thing the global pool of money wanted to deal with was individual people and their health problems or divorces or other reasons that may stop their steady repayment... Where there is a need there is money to be made.

While that is warming prepare a tart CDO sauce in a separate bowl. Combine 1/2 Cup Greed, 1 Tbl. Failed Compensation Structure, 1 tsp. Peer Pressure, a pinch of Bad Analytical Software and a dash of Faulty Credit Ratings. In an effort to cash in on a percentage of all that money out there (and they sure did) Wall Street designed a new product: The Collateralized Debt Obligation (CDO). Groups of mortgages were bought, packaged together, and sold as a single product.


Alex Blumberg: And they sold so many mortgages that there came a point in 2003 where just about everybody who wanted a mortgage and was qualified to get one .... had gotten one.

But the pool of money had just gotten started. They wanted more mortgage backed securities.

So Wall Street had to find more people to take out mortgages. Which meant lending to people who never would’ve qualified before.
Slowly one bank would loosen its lending restrictions, then others would be pressured to do the same, and so on and so forth, until there was really nothing left to loosen. A stated income, verified asset loan came out....then a stated income stated asset loan, then a no income, verified assets loan...then the mother of them all...the NINA...No Income No Asset loan.

It was pretty clear that there was a lot of risk in giving someone with little income and no assets a big loan, but it didn't matter to them because those loans were quickly bought from the originating banks, repackaged, and sold to the global pool of money and Wall Street Investment Banks. Since the brokers made a percentage of the total loan amount in commission, there was a nice incentive (for some to a tune of $100,000 a month) to approve and lend the absolute maximum amount you could, regardless of the consequences for others down the road.

Now all those money managers were not stupid, they knew that not all mortgages were the same, so they placed their trust in the credit rating agencies rating of these CDOs (all made up of different tranches, or small collections of different mortgage types, pools of pools if you will, some good loans, some crummy loans, some subprime toxic loans, all mixed together).

The credit rating agencies gave most of the CDOs a AAA rating, painting them as safe as US government bonds. They thought that if you took a pool of thousands of different mortgages, some risky, some not risky, that it would result in a money good investment. It turned out these agencies relied on historic data that did not reflect the new, low to non-existent borrowing qualification standards. [example: they looked at historical foreclosure rates and saw it was generally below 2%. So in their minds, absolute worst case it might show a 8% or a 10% foreclosure rate......Today, some are expected to go beyond 50%]

Combine CDO sauce and financial markets mixture in a baking pan. Bake at 325 degrees for 4 years: Everyone was happy and the money flowed. Bankers and brokers made tons on commissions, investment banks and the global pool was happy with a higher return, homeowners were happy with their houses they couldn't afford and many borrowed against their rising home values through a HELOC and used this to pay their increasing monthly bills. Sounds sustainable right?

Let cool, Serve on a chilled plate with a garnish of an election season: When the housing bubble burst and people could no longer use the rising value of their homes to make their monthly bill payments, all heck broke loose. Homes in foreclosure killed the value of the CDOs that all these different organizations had plowed their money into hoping for a little better return. A greater detriment was now the fear and lack of confidence each financial entity had in one another, effectively freezing normal lending and borrowing financial activity.

Plating Suggestions: Drizzle plate with Mark to market accounting and Fear of Sovereign-Wealth Funds: A contributing factor to the severity of the situation may be a newer accounting regulation called mark to market accounting which places a value on a financial instrument (like a CDO) based on the current market price for that instrument or similar instruments. Hugely complex mortgage instruments that had a sick or non-existent market were forced to be marked down substantially, causing a quick and fatal blow to several big Wall Street giants like Bear Stearns and Lehman Brothers.

Normally international buyers would be easing the situation by snapping up US bargains but this has been slowed for several reasons. Political uneasiness and national security concerns regarding Sovereign-Wealth Funds, or state owned investment funds, has slowed and prevented international cash from flowing in and providing capital or ownership transactions (maybe rightly so).

Be sure to share this dish with your friends. All your friends. Heck, how about everyone. Serves 301,139,947 so there is plenty to go around. Refrigerate leftovers.

I have done a lot of research on the issue and am standing on the shoulders of some excellent summaries and journalism including The Giant Pool Of Money by This American Life, countless Wall Street Journal and CNN Articles, and many more. This recipe represents my ideas on the causes and makeup of the issue

I am going to vote for the other guy in this election. All these guys just proved to me they no nothing and new blood could not do worse. Incumbant out new blood in. Lets give someone else a chance. What a wake up call this will be to those who are left.

I wonder if more people will start listening to Ron Paul now? He makes certain sense...

I have heard two directions suggesated to the taxpayer.

1.) For a long time it has been, "Write your congressman." There seems to be a general feeling that, that is not working.

2.) The new one is various forms of "Wake up."
This wake up call is intended for the tax paying American citizen.

I thank those of you who have made the wake-up call, sounded an alarm so to speak. Good job!

But, unlike the crew of a Navy ship or domestic firemen, we have never been trained as to what we are supposed to do when the alarm sounds.

I KEEP HEARING THE ALARM BUT NO DIFINATIVE DIRECTION FOR INDIVIDUALS.

I don't think carrying a sign down some street or writting a letter will make an adequate difference at this point.

Please be more specific, we have heard the alarm enough, and are in agreement with it. Now what.

Media blockout, or should I say "greyout" so they can say there was fair coverage on Ron Paul. I like this article, because again, it's true. After Al Gore's comment on "civil disobedience", perhaps it's time for some civil disobedience in the finance and tax system.

I HAVE BEEN SAYING FOR A LONG TIME TO VOTE OUT THE INCUMBENTS -- AND CONTINUE TO DO SO UNTIL WE FIND THE REAL PUBLIC SERVANTS!!! NO LOAN WALL STREET -- YOUR CREDIT RATING IS ZERO!!!

**Fiat economies are based on debt, not value. The Fed has the legal right to take all debt and pretend it is a credit. Then they take that credit and create digital or fiat currency. This is how money is created. Without debt there is no money. All fiat systems have a predictable lifespan. Our's is declining and is close to the parabolic drop. Saddam's WMD was no other than selling his oil for euros, not dollars. If he had succeeded, our dollar would have fallen big time. The euro would have been the reserve currency of the world in short time, replacing the dollar. Well we stopped that. Now we have our eyes on the oil. The goal is to make sure the oil is bought with American dollars. Now my criticism of Ron Paul is that he never tells his people how money is made in simple language. He says there is nothing good about the bailout but never gives solid reasons why. He needs to come out and plainly say that we need to abolish the FED and create a value based money system. You never hear him say that. He is always vague. I hate his speeches for that reason. But if he said that, I am sure he would be quieted. I think he has some healthy fear. But that being the case, he doesn't say anything real. There is no fixing the fiat system we have. So the powers are holding it up. The only real alternative is a value based currency. C'mon Ron Paul, get with it. How do we get there? Say something that means something for real change we so desperately need.

Posted by: pshdsa | September 22, 2008 at 05:22 PM**

Very intelligent post. You are exactly correct. I recommend that if you can afford to stockpile non-perishables, do so.

Obama can't say it now but hopefully he will be getting rid of the Federal Reserve and replacing it with U.S. Government issued and backed currency along with outlawing fractional lending practices. The private bank control of the U.S. and other nations currency systems needs to finally be destroyed. As a society, we have come to recognize that companies like Enron were run by criminals in white collars but the biggest criminals of all are the economic magicians who have been controlling world economies to their personal advantage for centuries.

RON PAUL FOR PRESIDENT!

Vote for anyone who does NOT support the bailout of the rich private bankers in NYC. McCain and Obama both think that the rich bankers should be saved from bankruptcy.
What the heck are they smoking?

I feel like the entire east coast from NYC to DC, including our elected leaders, has gone loony. Or maybe it is me?
Am I missing some logic for what is being proposed to help out the big banks?
The issue is giving $700 billion of taxpayer money to bail out big incompetent bankers and their foreign friends. Bankers who over the past 10 years have made hundreds of billions of dollars on these same credit vehicles (note they are NOT simple mortgages that will be purchased by the US government from the banks but wildly complicated, esoteric, $62 trillion leveraged insurance/hedging policies with unknowable values)
It will only directly help the banks not the rest of the economy. We will still get OUR recession but the big banks get to sit this one out! And if needed we will HAVE to give them more money or else the first $700 billion will have been wasted. And I assure you that $700 billion does not begin to cover the $62 trillion of these credit vehicles.
We can not afford REALLY one tenth of $700 billion!
Have you seen the "IOUSA" movie put out by the Concord Coalition and Pete Peterson? We MUST start cutting US government spending NOW or the Republic is headed for bankruptcy or default on our commitments in Social Security and Medicare.
Let the 27 year old financial bubble collapse and the excesses work their way out.
Let the free market work.
All the big banks went broke in 1907 and WE were fine in a couple years. This bailout will only prolong a two year down turn and convert it into a two decade recession/depression ala the GREAT depression or more recently in Japan.
I repeat we are going to give $700 billion of our money to incompetent business men.
Why?
Because they asked for it.
And who will decide who gets the money, why one man of course, who just happened at one time to work for one of the big banks getting bailed out AND who will likely in January end up working there again!
I mean I have head of chutzpah but this may take the cake!!
Oh did I mention, that he can not be sued for any of his decisions for WHATEVER reason he decides to award the money we do not have!
Is this a great country or what?

You know it might actually be cheaper to pay off the mortgages (or at least the upside down part) of ALL the delinquent and foreclosed homes rather than to bail out the big banks.

How about giving money to the banks holding the mortgage to pay down the principle so that NO houses are upside down any more? And adjust the interest rate so that people can afford the payments. That way people can stay in their homes.

Let's see 5 million homes (10% of total) - $100,000 on average each for the upside down portion of the mortgages AND we come up with $500 billion dollars.

Now after the principle and interest adjustments the credit instruments are not upside down. And people get to stay in their homes and not be evicted.

Of course, we can not afford the $500 billion for direct mortgage principle readjustments but it is cheaper than the mad $700 billion being proposed that we give directly to the big banks while screwing the homeowners being evicted!!

Interesting times don't you think!

On second thought, how about letting the housing bubble collapse and bring houses down in value such that real middle class families making a realistic wage could actually afford them. What a concept!

Naw. Letting the free market work would be too easy and too American. We need to regulate and control the heck out of this so that housing prices do not become sane again. We must keep the housing prices up as high as possible....maybe even higher. Let's work harder to manipulate the markets. After all we MUST make sure that the big banks continue to make even more money at our expense!

Please call your Senators and Congressman and TELL them to stop the insanity or else you will not vote for them again.
Finally, vote for either McKinney, Nader, Baldwin or Barr. All oppose this stupid bailout! McCain and Obama support it. Enough said.
Thanks.

Stop the Great Bailout!

Given the now likely passage of the Great Bailout, I'm mad as hell and I'm not going to take this anymore!

This is our last chance.

Visit http://ImMad.net to stop the passage of the Great Bailout right now!

Then spread the word to as many people as you can right away.

Ron Paul is right, but he is too late.

What every American really needs to be asking themselves now is "Was affirmative action really worth it?" You know that is the orgin of this entire mess don't you?

Government mandated that they give a proportionate amount of loans to blacks and hispanics, to make everything equal. One of Bush's campaign promises was to increase minority home ownership. What they were really doing was playing affirmative action with the money supply and loaning incredible amounts of money to people who could not afford it, and did not understand the loans.

This is not a Republican or Democrat issue, because they are both guilty of pandering to minorities and playing social engineer. As a result they have ruined our country, and the question should be, was this by design or incompetence?

Either way vote the incumbant out!

Ron Paul is mostly right, and he is not too late. Don't bail out the criminals; press charges if there are any to press. Then bite the bullet and get through this. Sometimes it has to hurt to fix the system... Lets take the hit before we end up a fiscal backwater. Then lets restore the regulations that segregated banking, institutional banking and insurance...

I think the things that make Ron Paul a nut are his adherence to hard line personal rights and his demand that we abandon the war immediately. Unfortunately, like Perot before him, people were unwilling to take the good with the kooky. I could stomach one Ron Paul for president with half the crazy...

Free Market does not equal market anarchy. Anyone who thinks the current crisis is caused by wildcatting capitalists taking advantage of the "free market" needs to refresh their memories on the basics.

A free market is not governmental and quasi-governmental control of the economy by a conspiring group of entities who alter market signals (ex. interest rates) and otherwise intervene. This is not a failure of the free market, nor is this system conducive for a free people.

The Wall Street Bailout Bill:
Bush McCain Obama et al.

The Realignment Of American Politics:
Anderson Baldwin Carter Choate Clemente Gonzalez Gravel Kaptur Kucinich McKinney Nader Paul Perot Sheehan Ventura

If we had more people like Ron Paul and Ralph Nader
in Washington this type of CHAOS would not happen.

This is Pure Corporate Welfare and a Money Grab!

Last night on Glen Beck he quoted a Spokes woman who
said the $700 Billion amount was not based on any type
of supporting data, it was just because they wanted a
"REALLY BIG NUMBER" ...

REPS&DEMS = DEATH to America !!!!

They have dismantlement the Constitution
They are killing Capitalism/Free Market
They are putting us in tremendous debt
And they are corrupt beyond belief!!!!

America first ! Vote out the REPS&DEMS..

Our government has two basic responsibilities:
1) Create and maintain a free and fair economy via competition (ie: not delve into price-fixing).
2) The safety of its citizens.

The worst thing anybody or any entity (people, as a whole) can do, is operate out of fear. And so far, I have heard nothing but fear-mongering about this bailout.

It's been far too long since our markets have had a REAL CORRECTION - LET THESE CORRUPT, ONCE-UNTOUCHABLE, ARROGANT, CORPORATE DEMAGOGUES AND "PUBLIC OFFICIALS" BURN!!!

(from Wikipedia)
Demagogy (also demagoguery): (Ancient Greek δημαγωγία, from δῆμος dēmos "people" and ἄγειν agein "to lead") refers to a political strategy for obtaining and gaining political power by appealing to the popular prejudices, emotions, fears and expectations of the public — typically via impassioned rhetoric and propaganda, and often using nationalist or populist themes.

There is absolutely no way a credit card company, via the duplicitous and collusive banking (and financing) cartels, should be allowed to legally charge 31% interest rates (with less-than fair interest-compounding mechanisms). THIS IS ECONOMIC SLAVERY THAT LEADS TO CLASS MANIPULATION!!! LET THEM BURN!!!

Where the HECK has the SEC been - out for a dinner and some drinks with the same lobbyists?

I sincerely hope that the FBI probe hangs a bunch more of these criminals.

Once all of this sh-tuff shakes loose and the mess is cleaned up, we need a few more, similar exercises (purge the price-fixing criminals) with:
1) Energy
2) Pharmaceuticals
3) Health/Hospitalization
4) Insurance
5) PAC Reform
6) Income Taxes

REVOLUTION!!!

Someone asked what can we do?

What can We The People NOT do?

Write/call/fax our representatives.

Take to the streets (some did last week).

Run for office yourself.

Vote lifetime politicians out of office.

Look to history--what did our forefathers do? We don't have to put up with this.

I want to know who is financially loosing of the politicians involved in the decision making process. I want to know of Barack Obama and his rival have investments that are been consummed by the economic crisis. I think we should have a plebiscite. How can the investors directly interested in restoring the banks and the financial system to its status quo be making decisions in my name?
As I see this is the first opportunity for the people and institutions that are economically healthy to be in a better correlation of financial power. If the house prices go down, many people that intuitively knew that the market was predatory and did not embark in any speculation or in any perverse loan will be able to afford property,and with this diminish the gap between them and the speculators that brought the economy and the lifestyle to this mess by swelling prices artificially. Please do not bailout. 'Let people choose, let go for a PLEBISCITE!

Sorry, but Ron Paul supports the very deregulation that got us into this mess.

Had Freddy and Fanny not been allowed to trade high risk subprime while being federally backed, we wouldn't be bailing them out. Had the 5 major investment banks not been allowed to leverage 40 to 1 against their assets, wallstreet would not have gone down. Had AIG not been playing with risky investments against it's amazing credit, AIG would still be here.

Allowing integral aspects of our economy go unregulated is a mistake that we are realizing now more than ever. You basically create companies that can make short term windfalls, execs pocket the doe, parachute out and in this case leave a wrecked economy in it's wake.

Hate to say it, but if we don't do something here, I'm not saying a bailout but some sort of market adjustment from the fed to whether the storm, it's will be hugely inefficient. We are talking about a credit crisis that will put more pressure on the economy than it can stand causing perfectly decent companies not quite prepared for total disaster to fall which will cause other good companies to fall and more people to lose the ability to pay for their mortgages, so on and so fourth. It's not as simple as Ron Paul likes to make it seem.

Michael, I don't know where you ge t your information about Ron Paul--I suggest you read this.

Ron Paul in the House Financial Services Committee, September 10, 2003

Mr. Chairman, thank you for holding this hearing on the Treasury Department's views regarding government sponsored enterprises (GSEs). I would also like to thank Secretaries Snow and Martinez for taking time out of their busy schedules to appear before the committee.

I hope this committee spends some time examining the special privileges provided to GSEs by the federal government. According to the Congressional Budget Office, the housing-related GSEs received $13.6 billion worth of indirect federal subsidies in fiscal year 2000 alone. Today, I will introduce the Free Housing Market Enhancement Act, which removes government subsidies from the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the National Home Loan Bank Board.

One of the major government privileges granted to GSEs is a line of credit with 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 GSEs in times of economic difficulty helps the GSEs 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 huge 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 GSE debt. 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.

The connection between the GSEs and the government helps isolate the GSE management from market discipline. This isolation from market discipline is the root cause of the recent reports of mismanagement occurring at Fannie and Freddie. After all, if Fannie and Freddie were not underwritten by the federal government, investors would demand Fannie and Freddie provide assurance that they follow accepted management and accounting practices.

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 granted to Fannie and Freddie 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.

Despite the long-term damage to the economy inflicted by the government's interference in the housing market, the government's policy 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 GSEs make investors underestimate the risk of investing in Fannie Mae and Freddie Mac.

Mr. Chairman, I would like to once again thank the Financial Services Committee for holding this hearing. I would also like to thank Secretaries Snow and Martinez for their presence here today. I hope today's hearing sheds light on how special privileges granted to GSEs distort the housing market and endanger American taxpayers. Congress should act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bail out investors who were misled by foolish government interference in the market. I therefore hope this committee will soon stand up for American taxpayers and investors by acting on my Free Housing Market Enhancement Act.

Dr. Ron Paul is a Republican member of Congress from Texas.

To the person(s) that removed my Ron Paul campaign sign form the front yard a few months ago probably wishes they had left it alone now.

Who controls the information controls the world. Our world is controlled by the main stream media. We're constantly being brain washed by these so called experts from the media(ie:CNN CNBC...) They painted this picture how the bailout must take place to save us all.
I find Ron Paul alternative is way more appealing. Yes, there will be pain. We have to take responsibilities to suffer the consequences from our bad deeds. Have we grown so arrogant that we think we could just wave a magic wand and everything will be fine? Can people just continue to borrow money to live beyond their means?
I find it sickening that we blindly give power to these incompetent people to control us. I also find it sad that a very well educated colleague of mine has never heard of Ron Paul. He knows only two main presidential candidates. This shows how powerful the main stream media is. It can filter out a voice that represent reasons and solutions. We complain how bad our choice of leaders yet we just ignore anyone willing to give us an alternative solution. Shame on us. And kudo the main stream media and the people behind it...you won.
Remember all the commercials about how we deserve bigger cars, houses, luxury vacations that we cannot afford under the normal circumstances? We deserve this credit crisis! We planned the fruit. We voted for the Bush empire. So we now have to eat it. And our children has to eat it.

The posting about what "choice" really means is a good one.

Write in your own candidate this election. We can still write, can't we?

We do have Dennis Kucinich and Peter de Fazio and a whole group of congressional reps, not all with Republican or libertarian bias, who worked hard to point out other options. The bill as it passed is really worth 820 billiion in partially recoverable debt. AND it does what Dr. Paul says, it perpetuates the system that is going down as unsustainable. It's bad enough when life depends on credit spending but once that's going strong, then making war is just stupid and self-defeating. All these themes remain.

 
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About the Columnist
A veteran foreign and national correspondent, Andrew Malcolm has served on the L.A. Times Editorial Board and was a Pulitzer finalist in 2004. He is the author of 10 nonfiction books and father of four. Read more.
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