Ron Paul said, "Liquidate Their Debt"..? by Merwin
I may not have caught that right. It sounded like Ron Paul said the debt needed to be liquidated. If that is what he said... it is one of the most intelligent t
If Ron Paul is calling for the liquidation of the debts brought on by the housing bubble bursting, then how could anyone say they would not vote for this man..?
At 4 minutes and 15 seconds into these Ron Paul highlights...
(may have to copy and paste)
Dr. Paul was asked essentially what should be done to help those struck the hardest by the fall of the housing market. At 5 minutes and 50 seconds (approx) he states that their debt should be liquidated. He prefaced his statement by declaring that...
"The government owes them (citizens) a free market and a sound monetary system, but they didn't give them that what they gave them a mess, they gave them a financial system that literally created this problem,"
"...everybody now admits in Washington, that interest rates were kept too low for too long. But not only that, in addition to that, it was an insult to injury, because they kept interest rates especially low with Freddy Mac and Fannie Mae, and it was a line of credit there and it was a guarantee.
Matter of fact I had introduced legislation ten years before the bubble burst to end that line of credit, but then the Community Reinvestment Act forced banks to make loans that are risky loans.
So the whole bubble was easily seen, consequences were anticipated, it was all government manufactured."
He goes on to say that the bad debt needs to be liquidated, at about 5 min 50 secs into the video.
I don't think that Paul is saying the entire debt of say, John Q. Public's debt, I think he may be stating the difference between the value of the mortgage then, as opposed to the current appraisal values.
But let us consider for instance that he might have been saying, 'These debts should be totally wiped out and the folks that were duped into thinking they could afford the home, should be able to walk away from the home and the mortgage burden, with no negative results on their credit rating." How could this possibly harm our economy..? If anything, this would stimulate our economy more than any other measures taken, to date.
For those familiar with my "Conspiracy..?" series... number three is coming out, perhaps later today. And is directly related to the above "manufacturing" of the housing bubble, by The Machine in D.C. And, "Amendment 14 Section 4" of our Constitution.