Sure, You Say That Now…

Ron Paul on Fannie Mae and Freddie Mac:

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.

Of course, he said this in 2003.  The guy really is a kook, huh?

Similar Posts:

del.icio.us:Sure, You Say That Now...  digg:Sure, You Say That Now...  spurl:Sure, You Say That Now...  newsvine:Sure, You Say That Now...  furl:Sure, You Say That Now...  reddit:Sure, You Say That Now... Tags: , , ,

If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.

Comments

He spoke these words while the Congressional seat-warmers around him rolled their eyes and snickered, I am sure.

Sorry, the comment form is closed at this time.