View Full Version : Ron Paul, the economic pychic?

01-04-2008, 03:13 AM
Between them, Fannie Mae and Freddie Mac back more than $4 trillion in mortgages. If they fail, it could force an unprecedented taxpayer-funded bailout. And they are much closer to failure than most people realize.

Some saw this coming, including presidential candidate Ron Paul. As far back as 2002, Mr. Paul - whose candidacy I'm not actively supporting - predicted the Federal Reserve would blow up the housing bubble.

Besides the Fed's low-interest-rate policy, which encouraged excessive borrowing to buy homes, its refusal to regulate mortgages gave lenders license to sell whatever mortgage products they could dream up, no matter how risky. Mr. Paul was dead-on with his prediction that the Fed was blowing a new bubble and that it would burst violently.

SOURCE (http://www.baltimoresun.com/news/opinion/oped/bal-op.fannie04jan04,0,1654729.story)

01-04-2008, 04:19 AM
Yay! Good news coming from my hometown newspaper :D

01-04-2008, 04:20 AM

In 2005, Mr. Paul introduced an amendment in Congress to end the implicit taxpayer guarantee backing Fannie's and Freddie's debt. He said at the time: "I hope my colleagues join me in protecting taxpayers from having to bail out Fannie Mae and Freddie Mac when the housing bubble bursts."
It's a shame others in Congress weren't listening to Ron Paul in 2005.

01-04-2008, 04:29 AM
This the kind of thing that the official campaign needs to be hyping big time.