Who has credibility on the Economy!

[Klash]

TweetShould we keep supporting plans from the same pragmatist politicians that helped create this credit crisis by giving us things like the "community reinvestment act" or should we support, the ideas of economist/politicians that predicted the credit crisis.

On Sept. 10, 2003, U.S. Rep. Ron Paul, R-Texas, testified before House Financial Services Committee, which was holding hearings regarding special privileges extended to government sponsored enterprises (GSEs).

As Paul saw the situation some five years ago, the government backing isolated GSE management from market discipline. If Fannie and Freddie were not underwritten by the federal government, he told the committee, investors would demand the institutions held to higher 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," Paul predicted. "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.

"...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."

On the same day, Paul introduced the "Free Housing Market Enhancement Act." The legislation would have removed 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. The bill had no cosponsors; it stalled in the committee process.

[Entire story]

[FUZO]

TweetKlash what really bothers me is that the people that now about politics know obama is going to raise taxes. now he lied to the peolpe in the debates. liberals want to blame the republicans for this bail out not getting approved,did they forget that 95 democrats voted no to the agreement. no they didnt say that on tv. i try so hard to look at both parties stuff and not be biased. but how can anyone see that obama is lying and that his plan wont work. i think the next 2 presidential debates mccain will come out swinging,he has to.the media,news papers,tv shows are all in for obama and its so sad that people will act this way. and if you look at the polls when bush and kerry were running kerry had a 10 point lead coming into nov 4 and bush won.

[Klash]

TweetYeah I know. The media is getting ridiculous in their biased reporting.
They started speculating about how this was going to negatively impact McCain's campaign immediately. My first question is why wouldn't they consider the impact on Obama's campaign. The Dems have control of the house and approved the vote on this bailout that 95 dems helped vote down and it's the Republican's fault? WTFever!

[FUZO]

TweetAS A FATHER AND A HUSBAND AND A TAX PAYER I'M ASHAMED TO SEE THIS TYPE OF STUFF FROM A OBAMA CAMPAIGN AND THE DEMOCRATIC PARTY.IF PEOPLE ARE MAD AT BUSH FINE BUT OBAMA DOESNT HAVE A CLUE ON HOW TO RUN THE UNITED STATES WITH NO EXPEREINCE. HE COULDNT EVEN GIVE ANY IDEAS ON HOW HE IS GOING TO CUT SPENDING. MCCAIN NAMED 3 RIGHT OF THE TOP OF HIS HEAD. AND TO RAISE YOUR TAXES.

[Klash]

Tweet

Yeah I know. The media is getting ridiculous in their biased reporting.
They started speculating about how this was going to negatively impact McCain's campaign immediately. My first question is why wouldn't they consider the impact on Obama's campaign. The Dems have control of the house and approved the vote on this bailout that 95 dems helped vote down and it's the Republican's fault? WTFever!

CNBC is now giving the credit for stock market jump to optimism that a bill will be passed.

[daved150]

Tweetit's pauls fault!!! fukers always gotta be right! he did this