October 2, 2008 5:26PM
Ron Paul Makes New Prediction
By Cheryl Casone
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Ron Paul will be joining us at 12 Eastern on Friday to discuss the new house vote. Although details seem to change as quickly as a model at fashion show, I’m looking forward to seeing what his next prediction is about the Rescue Bill.
When he we talked to him last week, he believed there would be a Great Depression. If the House, and again, the timing is murky for Friday, does pass the vote, I want to ask him to predict how long before we see the economy begin to recover, if at all.
If you have questions for the Representative, please leave them in the comments section. I’ll go through them before the show.
CC
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Comment by Justin
October 2nd, 2008 at 5:48 pm
There certainly wont be a recovery. You’ll get a quick pop in the stock market though. Good for a trade. And yes, it’ll pass this time around, because there are too many monied interests at stake. The people with first access to all of this new cash (debt) will benefit the most from it. The common man will end up having to pay more for his energy/food needs. Deleveraging will continue until we get to the point where the government will assume the entire private debt. At some point, we’ll default or pay our debts with money straight from the printing press causing massive amounts of dollars to return here from overseas.
Comment by Monty
October 2nd, 2008 at 5:48 pm
I have a few questions.
1. Would Ron Paul be interested in starting up a new political party
2. Why aren’t alternative plans being considered?
3. Why are all of the Pro plan people saying the same thing verbatim?
(it’s as if they held a class on capitol hill to teach them what to say)
4. Why do we allow a Senator to use scare tactics without being held responsible?
(Insurance companies lost a ton today on mere speculation)
5. Why are all of the Senators and Congressmen saying that this is a bad bill but
they are going to vote “yes”?
6. Will banks be more open to lend and if so, how long will this take?
7. How does this bill fare in our constitution and Bill of Rights?
8. How can we get our country back?
Thanks,
Monty Tyler
Comment by Kevin Deis
October 2nd, 2008 at 6:19 pm
Dr. Paul,
On June 15, 2007, you proposed H. R. 2755 “To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.” Why is there no specific language in this act to hold investigations against the Board of Governors for fraud and treason for destroying the value of our Dollar?
In Liberty,
Kevin Deis
Comment by Conrad
October 2nd, 2008 at 6:22 pm
Three questions:
1) If the bill passes, will this great depression be worse than the one in the 1930s, considering that the United States and its people are the world’s greatest debtor nation?
2) If the US does fall into a depression, what are the ramifications to the world in light of the fact that the dollar is: 70% of reserve currency, the vehicle currency, and the quotation currency?
3) Have any politicians changed their minds after speaking with you?
Thanks!
Comment by Susan Inloes
October 2nd, 2008 at 6:29 pm
I do not see how we (the country) can recover from this fiasco for quite a whilte. My husband and I both work, we have paid off all credit cards, but still owe on the mortgage (no, we are not in danger of foreclosure). What should we - the middle class -do to stay afloat? Thank you, Susan Inloes
I wish you had stayed in the race - we would have gladly voted for you!
Comment by Jim
October 2nd, 2008 at 6:30 pm
I will be interesting in hearing what Paul has to say. I remember him predicted this collapse during the debates. He seems to know economics fairly well.
Comment by Louise
October 2nd, 2008 at 6:38 pm
I saw a talk that Ron Paul gave last year predicting just what is happening. The more I see what is happening with this “bailout” bill the more scary it gets. Why are we responsible to bail out Wall Street in the first place? Wall Street was certainly NOT watching out for the folks when they were in the high cotton.
I also believe the panic that is being generated is a false hysteria that is being made worse by the media and some of our elected representatives. We do need to address the financial crisis, but not the way that it is being done by politicians with today adding ONE BILLION on to the 800 billion to buy the votes of the 12 dissenters. The wooden arrows, wool research (for fleecing us all!), some millions for rum producers in the Virgin Islands (what is the deal with that?) and the rest of the craziness.
There are so many sharp economists in America that have already made suggestions I’m sure, that could create a clean, workable solution that would strike at the cause also, so that we would not be revisited by this on an even bigger scale in the near future. We certainly don’t need to assume that 800 billion is the starting point as Paulsen and Bernanke laid out….which doesn’t even include what we gave up to Bear Stearns, Freddie, Fannie and then AIG! The worst thing to do would be rushing this problem through Congress now with all these add ons that will absolutely affect the citizens of the U.S. and are just another example of the same mentality that created the crisis initially!
I think Ron Paul has some good ideas and I am interested in what he has to tell us.
Thank-you.
Comment by James Redford
October 2nd, 2008 at 6:44 pm
Here is a question I have for Dr. Ron Paul: what do you think of economist Prof. Murray Rothbard’s specific plan for implementing a 100%-reserve gold-standard currency? Would it have prevented the current economic turmoil; and would it be a good solution for curing the ills of the present economy?
Comment by Philip in Los Angeles
October 2nd, 2008 at 6:57 pm
Mrs. Casone,
Please ask Congressman Paul whether he believes the anticipated passage of this bill will mark the formal abandonment of capitalism in the US in favor of socialism.
Secondly, please ask whether Congressman Paul believes a new consensus exists in Washington such that market indices like the DOW JONES INDUSTRIAL AVERAGE are now only permitted to rise, never fall; and whether this consensus will serve as a compass for future legislation.
Thank You.
Philip in Los Angeles
Comment by Mark
October 2nd, 2008 at 7:02 pm
What legal recourse do Americans have when their Congressmen swear an oath to uphold the Constitution but repeatedly break that oath?
Comment by Sarah Zhu
October 2nd, 2008 at 7:03 pm
I have been admiring Dr. Paul since his debates at Republican Primary.
If what he says is true, including his analysis of why we are at this crisis, then I see that we have two choices: deflationary disaster if Congress doesn’t pass this bill, and hyperinflationary wipe out if Congress does pass this bill.
I would like to ask Congressman Paul if he predicts any possibility of Zimbabwe like hyperinflation for America within 10 years if we keep going down this path of spending and borrowing.
Comment by Nathan
October 2nd, 2008 at 7:04 pm
Dr. Paul,
What could Middle-class Americans do, personally, to prepare for a financial crisis, such as another great depression or recession. Or is there a way to prepare?
–Nathan
Comment by David K
October 2nd, 2008 at 7:06 pm
Will the Euro increase in value or decline in value because of the bailout?
Was Europe more or less exposed to the banking/mortgage/crisis in credit?
Will the Chinese Yuan increase in value because of the US dollar inflation?
Comment by Sandra
October 2nd, 2008 at 7:09 pm
No question just an extended thank you to Dr. Paul for not giving up on the American dream or the American people.
Comment by spencer78
October 2nd, 2008 at 7:14 pm
Congressman Ron Paul, I have written all of my Washington State representatives and told them to vehemently vote NO to any bailout bill but all we have seen is the bill and its price tag grow and grow. I like to think that we convinced at least a couple (Rep. Jay Inslee and Sen. Maria Cantwell) to vote down this ridiculously socialized bill. I will vote against ANYONE who is for this. What else can I do to prevent the fed from taking over the banking community, eventual nationalization of Wall Street, and ultimately the erosion of MORE of my Constitutional freedoms?
Respectfully,
S. Dyson
Comment by CD
October 2nd, 2008 at 7:16 pm
Dr. Paul,
Do you find it humorous that you have been predicting this economic meltdown for years and the media and the GOP laughed at you…and now you look like a genious?
While you’re at Fox, please tell Chris Wallace we Ron Paul supporters take our marching orders from the constitution!
Thanks
Comment by Libertas1983
October 2nd, 2008 at 7:17 pm
I want to thank him for speaking out against the bailout. Second, I would like to see someone ask him about H.R. 2755 and why it is not included in the Bailout seemingly as it would end some of the problems. People all over the internet complain that he says what is wrong but has no decisive plan. What would he do instead.
Just a few questions
and here is the bill http://www.govtrack.us/congress/bill.xpd?bill=h110-2755&tab=summary
Comment by Edward
October 2nd, 2008 at 7:21 pm
Question for Ron Paul:
If the bailout causes hyperinflation as Peter Schiff has predicted, when could prices start to go up? Also does hyperinflation mean that housing prices will go up even though Ron Paul says they should come down? Will US hyperinflation cause prices to go up in other foreign currencies?
Thank you
Comment by Carrie Wilson
October 2nd, 2008 at 7:25 pm
What should I do with my money if I was one of the very, very few Americans that lived within my means, didn’t go crazy buying homes I couldn’t afford and actually do have a substantial amount of savings?
Comment by Tyler
October 2nd, 2008 at 7:25 pm
Cheryl, I have a question for Dr. Paul. That question is, “Will the Fed and treasury be able to find an accurate price for the assets they intend to sell or will they begin price fixing? Furthermore, will the government balk at even selling the assets and inevitably enlarge the federal government by nationalizing the mortgages?”
Thank you
Comment by Aaron Nichols
October 2nd, 2008 at 7:25 pm
Ask Dr Paul why our elected officials are determined to pass a bill that over 70% of Americans disagree with? Also ask him if our elected officials are aware of the possibility that they may be re- moved from office if they continue to support legislation that the American people don’t support. Also ask him why all the pork that is hidden within the proposed legislation is not being brought to light by the main stream media?
Comment by Darel
October 2nd, 2008 at 7:27 pm
It’s a shame Fox news demonized the wisdom or Ron Paul during the primary season.
In fact Fox news offered it’s own poll and Paul would always win first place. Yet they would claim the second place winner won or they would ignore there own poll just to support the lies of Rudy, Mitt or CFR member Fred Thompson.
Fox would later hold is’t own debate and not invite Ron Paul.
If Ron Paul became president he would have restored our monetary system and improved our once good name around the world.
Over the last many months Fox has began to lose it’s creditability and now Ron Paul’s wisdom and truth of our economic mess is now considered valuable to interview.
The truth is Ron Paul needed to become president and it’s a shame we have open borders McBama as the two choices. I will write in Paul’s name or vote for Chuck Baldwin if he is on the ballot of Virginia.
Every member who voted for the bailout should be charged with Treason. Every Senator who lives in a state which allows citizens to begin a recall should be recalled if they voted for the bailout. The same applies to congress.
IN the end Ron Paul has been correct with every prediction… so listen to him and support him.
We should never give anyone the power the senate bill provides.
Comment by Scott
October 2nd, 2008 at 7:30 pm
Ron Paul,
Most that have been paying attention are convinced that a commodity backed currency is the way to go since it would have made the inflation that contributed to this mess impossible. Practically, how can we get back on a commodity (gold, sliver, etc.) based monetary system?
Thank you,
Scott Brack
Comment by Ludlow
October 2nd, 2008 at 7:31 pm
Ask him about this.
In his Communist Manifesto, published in 1848, Karl Marx proposed 10 measures to be implemented after the proletariat takes power, with the aim of centralizing all instruments of production in the hands of the state. Proposal Number Five was to bring about the “centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.”
Comment by jon glazer
October 2nd, 2008 at 7:36 pm
I am aware othat fiat currencies have never withstood the test of time. However, has there ever been a previous period in which all of the worlds’ major currencies lacked any precious metal backing? If not, is it possible that since now all currencies are fiat that this will allow them all to survive? Maybe it is all relative?
Comment by Blake
October 2nd, 2008 at 7:36 pm
Cheryl:
My question for Congressman Paul is simple:
1. Given the strong opposition to this rescue plan by the American taxpayer, why is no one in Congress listening?
Comment by Phil Lovelady
October 2nd, 2008 at 7:39 pm
Dr. Paul. “What is the worst case scenario if the bill is not passed? I’m in the mortgage business & I help families get loans to buy homes. Will the mortgage business be a thing of the past? Thank you & I respect your comment.”
Phil Lovelady
Comment by bleep
October 2nd, 2008 at 7:39 pm
Dr. Paul:
1)Assuming that this bill will pass, specifically, what should the american people be doing in order to prepare for a potential depression? Saving, spending, selling house and getting a smaller one, buying extra food, moving assest out of stock market to CDs, buying gold and other metals, etc. There are a lot of options, and nobody knows what to do to protect our money and to prepare for the storm.
2)I saw Warren Buffet on Charlie Rose and he is for the bailout. He claimed that Paulson and Bernanke were the most prepare people we have to handle the crisis if and only if we approve the 700B bailout. Considering that Paulson was ex-cee of Goldman Sachs, and now Buffet bought a bunch of GS stocks, what do you think of Buffet’s assesnent of the crisis?
All I know if that Buffet is no dummie when it comes to looking out for himself that is, I am willing to bet that GS will the the first ones to get a taste of the bailout money.Dont you think?
3)Polls all over the bloggesphere suggest that about 75% of the population are against the bailout, what do think about the politicians(deciders) to go against the population will?
Comment by brad
October 2nd, 2008 at 7:43 pm
dr paul, what do we the people do now
Comment by Maximilian
October 2nd, 2008 at 7:43 pm
Representative Paul, what do think of an idea to back the dollar by a percentage by either gold or silver to help insure the dollar’s value to holders. An what about trying to propose the idea of legalizing other commodities such as gold and silver to compete against the federal reserve note in order to let the market decide which is better?
Comment by Alex Khatchaturian
October 2nd, 2008 at 7:46 pm
I suspect that part of what we are seeing in the freezing up of lending markets is strategic behavior on the part of big financial players who stand to benefit from the bailout. I would like to know if Dr. Paul holds this view as well.
p.s. I will write-in “Ron Paul” on election day!
Comment by HOLLYWOOD
October 2nd, 2008 at 7:47 pm
Ron Paul,
Pertaining to the U.S. Senate vote on the $850 BILLION BAILOUT…
What was Senator Harry Reid (D-NV) speaking to the Cameras/Media, which he clearly stated that a Major Insurance company that we all know, is on the brink of collapse/failure.
This has been confirmed to be Totally UNTRUE! Is it ILLEGAL for Members of CONGRESS to Intentionally LIE and incite FEAR to manipulate the votes to both congressional members and the Public, PRIOR to a major vote like ESSA?
Thanx! HOLLYWOOD
Comment by Carol May
October 2nd, 2008 at 7:50 pm
Congressman Paul,
Do you see any evidence that members of congress are in the process of building their own golden parachutes, seeing as most of them will get fired in November…?
Comment by Paul
October 2nd, 2008 at 7:50 pm
Hi,Ron
If they pass the bill will realestate prices still decline,and when do you think we will start to see hyperinflation. Thank You for all your hard work
Paul
Comment by Thomas Hoops
October 2nd, 2008 at 8:01 pm
Mr. Paul,
If I’m provided the opportunity to write your name in on election day, will it do anything more meaningful than simply voting for your endorsed candidate?
Comment by James
October 2nd, 2008 at 8:03 pm
For Ron Paul:
Why does the Senate insist on voting on a bailout package that has already been rejected by the house?
Comment by micah langford
October 2nd, 2008 at 8:08 pm
Would the country go bankrupt on its obligations to other countries like China under Ron Paul with the elimination of federal reserve notes? Which taxes would Ron Paul leave in tact if any? What would the military look like under Ron Paul? We know he would withdraw forces and close our bases around the world and put them along our border and in our ports for security, but what then? Does he think the technological innovative environment that our military does provide and drive forward and help advance our culture could be preserved? The military is a touchy issue, so how would he deal with it? Americans are used to seeing F-22’s, tanks, nuclear subs and aircraft carriers accomplishing missions. Does Ron Paul think we should have the freedom to build a nuclear power plant in every city that has the capital and good intentions? What exactly does Ron Paul think about anti-trust laws and are they necessary. Also, how does Ron Paul feel about patents and what the founding fathers were thinking when they incorporated them into the system.
Comment by Patrick Byers
October 2nd, 2008 at 8:15 pm
please ask Congressman Paul why, if his interpretation of how to remedy the economy is best, why are many economists adament that allowing the market to self correct would be very bad for the economy over the long run? Are they just looking at the short-term and not seeing the big picture? Or is there something they feel is flawed in your economic reasoning.
And you can tell Dr. Paul that I am a fervent supporter and thank him for his voice of reason during these economic debates.
Comment by David
October 2nd, 2008 at 8:17 pm
Will there be hearings to address the restructuring of the political/economic system (ahem … like the Federal Reserve) to actually fix the root of the problem after this band-aid solution? Or, will Washington assume that this bill was the solution until the next declared “crisis” from Bernanke and/or Paulson.
Comment by Nathan Garrett
October 2nd, 2008 at 8:19 pm
My question for Rep. Paul would be…Congressman, how do you feel about the sudden media interest in your ideas, when during the primaries, you were written off as an irrelevant fringe lunatic?
Comment by Mike Carpenter
October 2nd, 2008 at 8:20 pm
Congressman Paul,
I joined The Campaign for Liberty soon after it started, and I contributed to the 11/05/07 money bomb for your Presidential campaign. I wrote my Representative (VA-10) and Senators opposing the bailout bill. Sadly, all three ignored my plea. I did get a “Franked” letter from my Rep. explaining that he’s “more worried about the people of Virginia and across America if we don’t respond to the collapse in the credit markets in our country”. He goes on to bemoan the sale of Wachovia, which perhaps my family or neighbors use. As if it’s a bad thing for assets to transfer from a failing business to a successful one. Do you think members of Congress who voted for the bill don’t understand economics, or do they understand but conveniently disregard it while forcing taxpayers and inflation victims to bail out their friends on Wall Street? I suggested that the Congressman and his staff take advantage of the Capitol Hill campus of the Mercatus Center, run by the Economics Department of George Mason University. Are you familiar with this resource? I hope you will encourage your fellow members of Congress to utilize it as a guide in formulating their legislative philosophies.
Dr. Paul, you are a true Patriot, in the sense of George Mason and Thomas Jefferson. Unfortunately the term has been maligned by the misnamed Act which slanders the very word Patriot. May God bless you and your wife as she recovers from her illness. I’ll be praying for both of you.
Mike Carpenter
Sterling, VA
Comment by David
October 2nd, 2008 at 8:24 pm
Is there any chance Washington will listen to the unbiased advice of other experts besides the Treasury & Federal Reserve. This is especially important since Hank Paulson formerly worked for who we are bailing out and is worth 500 million dollars - do you think he even understands what middle class America is like? Also, the Federal Reserve is a private institution whose shares are not for sale and is owned by the largest banks - once again, the fox is guarding the hen-house. Can’t Congress see the conflict of interest here?
Comment by John E
October 2nd, 2008 at 8:25 pm
Question 1: Everyone I’ve talked with is strongly against the bailout and this mirrors the sentiments being expressed on many political news sites and blogs. If so many American’s are against the bailout, why are members of House and Senate pushing so hard for it?
Question 2: Earlier this week, there were fears that the stock market would crash if the bailout bill was not passed by the House. I’m not an economist but the market seemed to recovery pretty quickly the next day. Is there a real need to rush this bill or would it better for the House to debate the merits of the bill and put forth a set of suggestions that the American people can stand behind in support of?
thank you
Comment by Nick
October 2nd, 2008 at 8:26 pm
Ron’s response will certainly be that the bailout will only be a temporary solution and that the excess credit will only make the inevitable correction much more painful - if not downright catastrophic. The question you should ask him is why does he believe this. I know his answer but I want your viewers to know as well. Also, does he have any hope that the dollar can survive this misguided bailout or will it be a point-of-no-return?
Comment by Antony
October 2nd, 2008 at 8:28 pm
Dr. Paul,
Would you please explain what ‘fractional reserve banking’ is?
Thank you
Comment by Bob Anderson
October 2nd, 2008 at 8:29 pm
Please ask…Why not allow individuals a one-time “Tax and Penalty Free” withdrawl from a deferred compensation plan (401K, 403B or 457B) of up to $100,000 for the purchase of a first or second home? Wouldn’t that stimulate the housing market and get the inventory of existing homes on the market down to a reasonable level? This would not require a $700 Billion dollar bailout…
Comment by Karry Payne
October 2nd, 2008 at 8:33 pm
When are you, Cheryl going to admit that he is the man to listen to. Truth, honesty, tell it like it is, no suger to make the medicine go down. God forebid we lazy Americans to worried about are dam cell phones, ipods, fashion, stylish cars, ect. cant handle commen sense living within are means. Nether a borrower nor a lender be. We all fall into this borrowing and lending, and it is not the way to happienes, it is now going to be the end of our freedoms. Isnt that such good suger it makes you so happy. Let the government pass this bailout and see how good the medicine with all the suger tastes. All I have to say is dont blame me I voted for the one honest man I know of Ron Paul.
Comment by Jenn
October 2nd, 2008 at 8:34 pm
Dr. Paul–What can the average individual do besides voting third party and writing letters and calling our representatives to contribute to a real change in America? How do we turn the ship around that is headed for the cliff? There must be a way to organize and return our country to basic Constitutional principles. Thank you.
Comment by Danny S
October 2nd, 2008 at 8:37 pm
Representative Paul has often mentioned his appreciation of Representative Kucinich, a democrat. Which representatives and/or senators would Ron Paul consider allies in his fight to reform the nation to sound money principles?
ALSO
In the 1980s, Rep. Paul co-authored the Case For Gold, a minority report of the U.S. Gold Commission. Why have the impacts of the US being off the gold standard only shown subtle effects thus far and appeared in this crisis, unlike in the report when it was cited we would be on a collision course in 10 years. What is the difference between the situation in 1982 and today?
Comment by Brian Powers
October 2nd, 2008 at 8:40 pm
Mr. Paul
What can a Ordinary American do to help out in this economic crisis?
AND
Are big lobbyist having an impact in how senators and representatives vote on the bailout bill? and why?
Comment by Ron in Florida
October 2nd, 2008 at 8:40 pm
Question for Ron Paul.
Can you or will you, challenge the Constitutionality of this “bailout”?
It seems the government at every level is NEVER challenged on anything it spends our money on. Constitutionally, that is.
Thank you for voting NO.
Comment by Kathleen
October 2nd, 2008 at 8:42 pm
I’ve been reading Dr. Paul’s writings on the economy for years, and I’m very familiar with his respect for the Free Market, sound money and an end to the Federal Reserve and its ability to print money out of thin air. My question is for Fox Business as a national media outlet.
Although recent polls indicate that McCain and Obama are “neck and neck,” each with about 50% of the vote, the reality is that most polls are targeted at so-called “likely voters.” Not all voters, not all U.S. Citizens eligible to vote, just “likely voters.” So although either candidate may win with 50% or so of the votes cast, the next President will be elected by about 15% of the adult Citizens of this country. (And he’ll no doubt claim a “mandate”!)
So roughly 85% of U.S. Citizens eligible to vote find neither “major party” candidate compelling enough to bother with. The vast majority of U.S. Citizens may find that the man elected President in no way represents their views.
And yet the Democrat and Republican Parties have a monopoly on presidential debates!
As a major media outlet, what prevents Fox Business from sponsoring a debate that includes *all* viable Presidential candidates? (My definition of viability is that the candidates appears on enough State ballots to win the required number of Electoral votes to be elected.) A multi-party debate would allow candidates to discuss economic issues from every angle.
Voter turnout in this country is a disgrace, and I believe that more people would participate in the process if they had the opportunity to learn about *all* the viable candidates, not just the Dems and Reps.
Comment by DT
October 2nd, 2008 at 8:42 pm
Thought you’d find this article interesting
Check out this New York Times article. Historically speaking it’s absolutely stunning. (The story was published September 30th 1999 – 9 years ago to yesterday.) I highlighted the more incredible text… This predates Bush and 9/11
——————————————————————————–
Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES
Published: September 30, 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets — including the New York metropolitan region — will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates — anywhere from three to four percentage points higher than conventional loans.
”Fannie Mae has expanded home ownership for millions of families in the 1990’s by reducing down payment requirements,” said Franklin D. Raines, Fannie Mae’s chairman and chief executive officer. ”Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.”
Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.
”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.”
Under Fannie Mae’s pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 — a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.
Fannie Mae, the nation’s biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.
Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.
Home ownership has, in fact, exploded among minorities during the economic boom of the 1990’s. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University’s Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.
In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent.
Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites, in part because blacks and Hispanics in particular tend to have on average worse credit ratings.
In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae’s and Freddie Mac’s portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.
The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.
Comment by Crazy Uncle
October 2nd, 2008 at 8:43 pm
Do you believe that the American people will come to realize that the federal reserve (and other central banks internationally), is driving the country into financial devastation?
Do you think that the American people will ever have an honest currency backed by gold or silver?
Does the American people know anything about the “derivatives bubble”?
Do they know that the international derivatives bubble exceeds a QUADRILLION dollars just waiting to bust? What can be done about it?
Comment by Darryl Schmitz
October 2nd, 2008 at 8:44 pm
Congressman, as you know our federal government has acquired an addiction to unconstitutional spending and exercise of power that would leave the heads of our founders spinning.
Since substance addictions are more often successfully cured by the “cold turkey” means of reform and behavior modification, can this economic crisis be seen as a turning point that forces our elected leaders to once again adhere to the Constitution after they take the oath to do so?
Comment by Alexander Falconi
October 2nd, 2008 at 8:44 pm
If indeed the bailout is in the intended to help those on MY street, why are a vast majority of the “assets” being dumped on us derivatives and the like.
Derivatives aren’t insolvent, they’re WORTHLESS.
-Alex
Comment by Pete
October 2nd, 2008 at 8:46 pm
Just as this crisis has revealed to the world Ron Paul’s accuracy, it’s also shown how bad some of the media coverage of Ron Paul has been. Don’t think people don’t notice that Fox has been very tough on Ron Paul… for reasons I can’t understand.
Comment by Tim
October 2nd, 2008 at 8:57 pm
Why are you so freakin awesome? The last congressman who was as awesome as you was Davy Crocket? Why are awesome congressmen so rare? …That is what you should ask him.
Comment by John
October 2nd, 2008 at 9:14 pm
I do not have questions for Ron Paul because I know exactly where he stands, with the most military donations, record fund raising, and a PERFECT Constitutional voting record. I do however suggest to the host in avoiding the same question posed by the other “reporters”. It’s boring and not interesting at all. Here are some angles to take in help educating the public and making the interview fresh, informative, and interesting. 1) Thomas Jefferson is quoted to say that banks are more powerful than standing armies and that the greatest threat to free markets is the central bank. Is what we are seeing today, fear based power grab, what Thomas Jefferson wrote about 200 years ago? 2) What is serfdom? Are we headed towards serfdom in America? 3) Nobody is talking about this option: seeking justice at the highest levels and restoring Constitutional rule of law. Does the US Constitution have the answers to our economic woes? How? 3) How is military interventionism, the policeman of the world, damaging our economy? 4) If we continue this path, of over spending, over regulating, over taxing , how will this effect the average American now and the next generation? 5) What are some practical actions the American person to do to have their voices heard in Washington DC ? 6)You talk of peace and prosperity, can you explain what you mean? I hope that these questions will inspire you to ask like-minded inquiries to warn the American people. The American people are sick, tired, and REALLY ANGRY!!! If done right, your video will go viral in the Internet.
Comment by PainfullyAware
October 2nd, 2008 at 9:19 pm
Ask Him how it feels to be one of the only sane people in the Asylum of Congress.
The man is a God Send that he has a position and voice to help Re-Educate the American Populous.
When you can create money out of thin air you can buy governments.
Take a look at what is happening here at home.
Comment by C. Davis
October 2nd, 2008 at 9:28 pm
Question for Ron Paul: Will you not launch a third party bid for president in order to give conservatives (not neo-cons, AKA National Socialists) a candidate who represents their principles?
Comment by Matt
October 2nd, 2008 at 9:29 pm
Has There been a bank hoilday be decided on yet?
Comment by Jason
October 2nd, 2008 at 9:33 pm
Ron, Murray Rothbard predicted many years ago that the evolution of synchronized easy money world wide will be first increasing finance/stock bubbles and then, when these let go, a great destruction of paper wealth in a gigantic finance/stock crashes. These will likely be synchronized worldwide. That destruction of paper wealth will be highly deflationary. First, as stock prices drop, for example, the valuations will drop like a stone, and trillions of dollars of paper money will literally disappear like smoke. Where are we in this process and how can we expect this to unfold?
Comment by Louis Nardozi
October 2nd, 2008 at 9:34 pm
Dr. Paul:
You have been accurately predicting the effects of fiat currency since the ’80s. Given that you’ve been right time and time again, why do you think our government continues to spend with criminal recklessness? What can we do to compel our government to listen to reason? Thanks to FOX for providing coverage of our nation’s greatest (and most honest) patriot.
Comment by Chris
October 2nd, 2008 at 9:35 pm
I dont have a question but more of a comment. The problem with this country is we refuse to accept responsibilty for our actions. Years and years of free spending borrowing money against assests that people thought would rise forever which was clearly a mistake cannot be corrected with a 600 per person rebate. It cannot be corrected with a bailout by lawmakers who only care about the next election and not the future of this country. It’s time for this country to take it’s medicine (myself included) lets end the stop gap measures that we seem to love. Let the banks fail that must and the homeowners lose their homes who must. It will be painful for sure but in the end the speediest way for this country to get back on the road to recovery.
In summary where i agree with Ron Paul is i dont think the bailout will work. Great Depression (who knows) Tough times absoloutely :(!! But in the end we will come out stronger like this country always does.
Comment by RPr2
October 2nd, 2008 at 9:41 pm
Ron Paul!
Comment by Edward Jacobs
October 2nd, 2008 at 9:48 pm
Ask Dr. Paul to explain the difference in the CAFR and the “Budget”. How will this bailout affect the CAFR funds?
Comprehensive Annual Financial Report.
Comment by Jasbinder G.
October 2nd, 2008 at 9:49 pm
I only have one important question:
I want to ask Dr. Paul when does he think will the US Media finally listen to his message on the economy? The US economy is cratering because there has been less production and more money printed. I feel sorry for Americans. Your country is going down because of economic mismanagement. I will not be surprised if Fox News goes broke within 5 years.
JG
Comment by Joe Perrell
October 2nd, 2008 at 9:50 pm
At what point will OPEC countries choose a currency other than the dollar for pricing oil, and what impact might this have on our money and our economy?
Comment by Ludlow
October 2nd, 2008 at 9:53 pm
In his Communist Manifesto, published in 1848, Karl Marx proposed 10
measures to be implemented after the proletariat takes power, with the aim
of centralizing all instruments of production in the hands of the state.
Proposal Number Five was to bring about the “centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.”
Comment by Carl Pivonka
October 2nd, 2008 at 9:58 pm
If Congress passes the Bailout Bill, how long do you think it would be before we would enter into a new Great Depression?
AND, what are some things a family could do to prepare themselves for this time, like financially.
Comment by Michael
October 2nd, 2008 at 10:09 pm
Would it be necessary for the country to go through about a year of a great depression in order to cure this recession instead of keeping this system of life support.
Comment by Michael
October 2nd, 2008 at 10:10 pm
What role does the Federal Reserve play in this economic situation?
Comment by Candance
October 2nd, 2008 at 10:15 pm
We heard several representatives on the house floor today talk about how this bail out also bails out foreign investors with China being one of the foreign investors and that they have been leaning very heavy on the white house to pass this bail out bill.
Can you elaborate more on this ?
Comment by Docwilliam
October 2nd, 2008 at 10:17 pm
The idea of a credit based economy goes against all common sense. Us, citizens of the United Stated need money, not credit! Bail us out, not the Bankers’ and Wallstreet!
How about a plan that does not involve hundreds of middlemen (bankers, wallstreet) and more credit and interest payments. There will be interest on this money at the head of it. Then compounded by giving it to the banks so they can loan OUR (tax payers) money to us? How can anyone believe that that helps anyone but the bank cronies, the lobbyist and our own Representatives? This seems like the last great fleecing of America before we take the final fall. The plan to fleece America will work, the rest of it will fail.
It does not take a rocket scientist to see through this sillyness. Give the money to US, for a change and all this debt. will get paid off and the economy will take off again. Give us a reason to go into debt! Let us have our money!
Comment by Eric
October 2nd, 2008 at 10:32 pm
What should normal everyday citizens be doing to, “weather” the upcoming storm?
Comment by john
October 2nd, 2008 at 10:38 pm
Why does a veteran that VOLENTEERED for 6 years from 1980-86 not recieve a 5 point veterans preference for federal government jobs yet a veteran that was DRAFTED for 2 years prior to 1974 or JOINED after 2001 get veterans preference even though both may have served in the same service, at the same base, yet in different years? Why is one veteran treated better than the other veteran?
Comment by Ken Wisuri
October 2nd, 2008 at 10:43 pm
Congressman Paul,
You talk alot about inflation being a tax that hurts the middle class. Please explain why it’s the middle class versus the wealthy, who have amassed savings.
Thanks!
Comment by Jason
October 2nd, 2008 at 10:44 pm
Can we create a new world government without borders and elect you as our leader? It can be managed online. We’ll ignore all other authority except that of this new government.
Comment by Joe
October 2nd, 2008 at 10:45 pm
Please ask Dr. Paul who is blocking his legislation HR 2755 to Abolish the Unconstitutional Federal Reserve? God bless Dr. Paul he has been the taxpayers best friend for the last 30 years.
Comment by WizarDave
October 2nd, 2008 at 10:48 pm
If your bill to Abolish the Federal Reserve were to pass, how would we transition to sound money? Could we pay off our loans based on Federal Reserve Notes with gold backed currency? How would passage of HR 2755 be better than the current bailout plan before congress?
Comment by Ryan
October 2nd, 2008 at 10:49 pm
Dr. Paul, sometimes people perceive your positions as heartless. What is the most concise, persuasive way you know to articulate libertarianism? Is there such a simple way? How could it apply to the bailout?
Comment by Jonathan D Hodges
October 2nd, 2008 at 10:50 pm
Thank you for giving Dr. Paul this opportunity to advocate ‘Free-Market’ capitalism.
His predictions will be correct, and I wish that he would emphasize that the recent government intervention in the financial sector is in perfect alignment with Karl Marx’s ‘Communist Manifesto.’
Sadly, we are now a Socialist country.
Comment by Dr. Steven F. LeBoeuf
October 2nd, 2008 at 10:50 pm
Dr. Paul,
I’m against this unconstitutional absuse of government power as much as you are. Still, many folks are asking us free market advocates to quit whining about the “bailout” and give us a better plan. What do you think is the single most important thing the government can do (or quit doing) to help speed up the economic recovery?
thanks much,
Dr. Steven F. LeBoeuf
Comment by Kurt
October 2nd, 2008 at 10:53 pm
The first time in my life I intend on voting for someone who is not on the ticket. With increased popularity in electronic voting, how does one “scratch out” Mcain and Obama and pencil in Ron Paul if voting electronically?
Vote for Ron Paul in 2008
Comment by Zephram Stark
October 2nd, 2008 at 10:54 pm
Assuming that the House votes to purchase the 700 billion dollars of Junk Debt that the Senate attached to the H.R. 1424 Pork Bill, am I legally compelled by the Constitution to help pay for it?
Comment by Rich
October 2nd, 2008 at 10:56 pm
Please ask Ron the following questions
1.)Why is our Congress even considering this $700 billion bailout bill when the Federal Reserve is able to inject liquidity into the market at will, like they did earlier this week ($620 billion)? It seems like a waste of time.
2.)What is your favorite flavor of ice cream?
Comment by Corie Ridlon
October 2nd, 2008 at 10:57 pm
Hello Cheryl,
I am losing hope for our country. Please ask Ron Paul this question only if the House passed the Bail-out bill: “Now that the Bail-out bill has been passed, what recourse do citizens have to continue to fight this injustice?”
Ron Paul is one of the only people who is giving me hope right now, that our government can fundamentally change for the better. He is probably the most moral person in congress, and is a hero for millions of Americans.
Thank You,
Corie
Comment by Steve
October 2nd, 2008 at 10:58 pm
Dr. Paul, how can we maintain a free society when the media is corparate owned with a obvious aganda?
Dr. Paul, Can you explain to us the duties of a free press?
Dr. Paul, Is corporate media a good thing for a America?
Dr. Paul, How do you feel about our (fox news) attacks on you and attempts at swaying the public during your bid for office?
Dr. Paul, Is the light of liberty alive still in this country, if so where.
Dr, Paul How
Comment by Daniel Patrick
October 2nd, 2008 at 11:10 pm
How can the American people safeguard their savings from the coming Depression?
Comment by William Hinkle
October 2nd, 2008 at 11:16 pm
Hi Cheryl and Dr Paul,
I have a question. Where can I buy some silver ?
The price is down but nobody has silver anywhere
close to the spot price. What is going on ?
Demand is high, price is low and there is none available.
Something smells.
Bill Hinkle
Comment by Chris Billings
October 2nd, 2008 at 11:16 pm
I’d like to ask Dr. Paul what us concerned citizens, who are knowledgable on monetary policy, can do to promote HR2755.
Comment by Timothy L. Norris
October 2nd, 2008 at 11:17 pm
The Senate and House passed the rescue bill that the polls showed the American people were against. How do we get our congressmen to represent us?
Comment by Chris Billings
October 2nd, 2008 at 11:19 pm
I want to ask Dr. Paul what citizens can do to promote HR2755.
Comment by Joel
October 2nd, 2008 at 11:20 pm
Congressman Paul,
What effect does the $150,000 increase of federal deposit insurance for depositors from the current $100,000 level to $250,000 have on the economy?
Thanks,
Joel
Comment by Louie Charles
October 2nd, 2008 at 11:26 pm
Is Hannity ready to admit what a fool he was during the GOP debates yet?
Like Ron Paul would have trouble beating O’Bama… please.
LC
Comment by Mario Ochoa
October 2nd, 2008 at 11:28 pm
If the money of this bailout comes from the Federal Reserve, why we taxpayers have to pay it back?
Comment by Mario Ochoa
October 2nd, 2008 at 11:33 pm
Do you know if Sen. Obama or Sen. McCain knows what inflation relly means?
Comment by Ron
October 2nd, 2008 at 11:36 pm
who cares about ron paul??
Comment by Mario Ochoa
October 2nd, 2008 at 11:37 pm
If we are able to export our inflation, what is the problem?
Thank you.
Comment by PHiL in California
October 2nd, 2008 at 11:44 pm
How much support do you have for H.R. 2755: Federal Reserve Board Abolition Act? And when is the House Committee on Financial Services going to take action on that bill?
Comment by John Whittington
October 2nd, 2008 at 11:45 pm
What three things would you do right now and what do you think caused the greatest damage, the Fedral Reserve’s easy money policies or the easy credit policies mandates?
Comment by HOLLYWOOD
October 2nd, 2008 at 11:47 pm
Ron,
Why is that we all know that the standard of living goes DOWN, when inflation increases(US dollar worth less). Government’s continued spending, is adding to the massive National Debt totals and causing our INFLATION to skyrocket, while the U.S. dollar valuation decreases.
What can be done to curb any further Federal debt spending in CONGRESS and EXECUTIVE branches and restore valuation to the dollar, lower inflation, and increase our buying power?
Thanx,
HOLLYWOOD
Comment by carla
October 2nd, 2008 at 11:50 pm
Dr Paul, Will You consider running on a third party ticket in 2012? Do you feel that Congress really has any power anymore when everyone on the Hill seems to be getting some sort of payoff for voting the way The Bush Administration tells them to!
Comment by Jim, Hangtown,Calif
October 2nd, 2008 at 11:50 pm
Doctor Paul, do you agree with Congressmen Brad Sherman’s speech on the house floor, just before the Debate, “That the Main purpose of this bail-Out Bill is to pay -off foreign debt, and Powder the noses of those in Wall street”? and leaving the average American! who makes around 50,000 dollars a year, and that’s both parents working, with nothing but the bill and having the bill payed off by our Grandchildren.
Comment by Conrad
October 2nd, 2008 at 11:55 pm
One more question:
- Do you believe that, should another Great Depression occur, Americans will be more likely to embrace “New Deal” era programs?
Comment by Alfonso Giles
October 2nd, 2008 at 11:56 pm
Question for Dr. Paul:
Many of the financial economic woes we see today have been predicted by you, and now since you have predicted The Great Depression V2.0, what are your suggestions to the public about being able to survive this. Should we invest in commodities such as gold and silver?
Thank you,
Alfonso Giles
Comment by HOLLYWOOD
October 3rd, 2008 at 12:01 am
HI,
Last week, while ignoring the dissimilar legal issues raised in the two lawsuits, the U.S. District Court issued an Order combining the two cases into a single case and denying the applications for injunctive relief requested. The Court, in effect, ducked a judicial (and very public) hearing to examine the critical legal question at the heart of the bailouts: What Constitutional authority exists for the U.S. Government or Federal Reserve to use public (taxpayer) funds for definitively private purposes?
How can a Judicial District Court Barr any American the right to representation of their citizenship, to answer and rule how the U.S. government uses Taxpayer funds for private purposes?
Thanx,
HOLLYWOOD
Comment by steve
October 3rd, 2008 at 12:07 am
Please ask Dr. Paul to come into FOX to sit down for a segment and talk about Austrian Economics…or at least have a few “experts” come on the show to discuss the economic theories to break it down for the American people. If Fox claims to be conservative then this should be something FOX can get behind and support. I mean after all the House didn’t vote to pass the first bill. The America people don’t support it!
Comment by Elizabeth Montenegro
October 3rd, 2008 at 12:07 am
If it wasn’t bad enough that the politicians in Washington were in bed with Wall Street, we now have them rallying votes from house represenatives in what ammounts to bribery ,in order to obtain a ” yes ” vote to push through this ” rescue plan”. Listen closely to what house majority leader Steve Hoyer said. The heat is on despite nagging doubts from our represenatives, who don’t believe this bill will be a lasting solution. This is the best we can expect from our leaders? Wake up Americans, take a hard look at our country and ask how we got to this point. We need to fire many, start a new system, and effect laws that make our represenatives as responsible as Wall Streeters are to the public. Until that happens, we’re all going to be living with the continuing problems we have.
Comment by Adam Martin
October 3rd, 2008 at 12:08 am
Should I start buying gold right now?
Comment by Salvatore Giuseppe
October 3rd, 2008 at 12:09 am
How do Republicans support a bill that should be against the vein of everything the republican party is supposed to stand for?? What happened to the free market advocates, what happened to minimizing government??? Where is the party headed?? You were right that the party has lost its way, and you have been right on everything you’ve been trying to tell the masses. One day you will get the respect from the GOP, even if it means McCain will fall come election day.
Comment by Dan Fitzgerald
October 3rd, 2008 at 12:10 am
there appears to be a contest between the two major party presidential candidates to see who can denounce Wall Street Greed in the most florid language.
But the Community Reinvestment Act required actuarial stupidity, the Fed inflated the money supply way beyond any rational level, and the mark to market rules precluded realistic valuation of mortgage derivatives.
Is this another example of government meddling, fouling things up, then blaming the market and calling for increased government meddling?
How are the perpetrators getting away with playing the saviors?
Is
Comment by Kenneth
October 3rd, 2008 at 12:14 am
The Constitution of the United States is a social contract between the people of this land that establishes a certain form, function and limit for the United States government. Dr. Paul, if the federal government of the United States derives its legitimacy of existence from the Constitution - at what point can we consider this social contract broken by the current government making any authority possessed by such an entity illegitimate?
Comment by Judith Parker
October 3rd, 2008 at 12:15 am
I keep hearing some representatives and senators making the comment not to listen to their constiuents. I have heard this more than once during this televised debacle. That is precisely why we are in the mess we are in. Mainstream American is smarter than the ‘elites’ in Washington
Comment by WarDogLRS
October 3rd, 2008 at 12:18 am
Dr Paul is the only one that talks about bringing the troops home ending the federal strangle hold of the IRS & the Federal Reserve bank and shut down all the world military bases. Restore order to the Economy hold up fraud laws against the bail out bums that got us into this mess. Get off the Keynesian monetary policy and adopt the free market ideas of Austrian economics that prospers the poor along with deflation spending to have buying power. Unfortunitly not to people know Austrian economics.
Here is the link
http://mises.org/
Comment by Matt Verduci
October 3rd, 2008 at 12:20 am
I think it would be interesting to hear Dr. Paul compare the current economic conditions to those after the credit and land bubbles burst during the 1830’s. Are the situations at all similar? Can we learn from that deflationary recession? If not, have there been any situations similar to the one we’re in now that we can learn from?
Comment by joe
October 3rd, 2008 at 12:22 am
name
Comment by Restore The Constitution
October 3rd, 2008 at 12:29 am
If we have to borrow the money from foreign banks to do the bailout, are we then giving it to other foreign banks to bail them out. Is this constitutional?
Comment by Julia Burger
October 3rd, 2008 at 12:30 am
Since you can’t change everything in Government at once, what would be the possibility of your economic team authoring a new bill targeting the credit crisis that would address the root cause of the problem, gain bipartisan support and have the potential to actually solve this problem without creating substantial inflation?
Julia Burger
NY State dairy farmer
Comment by Ilir Sinishtaj
October 3rd, 2008 at 12:48 am
I am a twenty year old, full time, oakland community college student in michigan. I also work full time between a few different “odd jobs,” (painting commericially and residentially) and i help with a family owned and operated business. Since i can remember i have wholeheartedly hated politics and politicians equally. They are not for the people. Period. Maybe i was falsely stereotyping, but as i have been exsposed more and more this year to election hype, i have done some digging. And to my amazement, i have found a politician who has been able to captivate me, no, hold my attention for more than 5 minutes. That man is Ron Paul. I recently took a micro-economics class this past winter. The one thing i can truly look back on and remember verbatim is the fact that our entire monetary system, our economy essentially, is not even ran by our government. Our money has no value other than the material and ink used to comprise it. I find this laughable, like many things dubbed “American.” Although i would not consideer myself “educated” on this subject, i know do know based solely on common sense that making the same actions everyday and expecting a different result is a most outrageous concept. How in the world does spending an additional 700 billion dollars help when we are approximately 10 trillion in the hole??? I dont see the logic in that. Maybe im just a naive misinformed middle class young adult. To some politicians i dont exist. But you Mr. Paul, i feel like i’ve been seen, i feel wanted in this society. So for that, I applaude you Ron Paul, personally, for everything you do. Bring the troops home, rid us of our Federal Reserve System who aren’t even a part of the country, abolish the IRS. Above all, restore this country to the land of the free, and the home of the brave. Because WE, THE PEOPLE, deserve better. Thank you for your hard work, and keep it up. We hear you…
Comment by JimS
October 3rd, 2008 at 12:50 am
Dr. Paul
Huge supporter of yours here.
I write to ask - whats your constitutional judgment on the ratio of representatives in the house vs the population. In other words are the American people represented properly in your view.
The current national average is 1 rep for every 600,000 people. Some districts the ratio is insane and others its more respectable but the average seems undemocratic to me. What are your thoughts.
To the viewers out there - this is one of only a handful of the good guys in Washington.
Thank you,
Jim
Comment by R Whatley
October 3rd, 2008 at 12:50 am
Please ask Congressman Paul to explain, in layman’s terms,
–how the Fed was able to inject a further $630 billion into the markets WHILE the debate was ongoing in the House last Monday re: passage of $700 billion which was being demanded by Treasury’s Paulson?
–If the Federal Reserve can (and have) perform(ed) these “magic acts” at will, why are Bernanke/Paulson/Bush going to such lengths to push this legislation on the texpayer?
Also, a tremendous thank you for your steadfast, and courageous, consistency over your ten terms in the Congress, Dr. Paul, would that there were MORE Congresspersons that lobbyists would avoid like the plague! You are an American hero Sir, and we are grateful to have your example!
Comment by Wayne Pierce
October 3rd, 2008 at 12:56 am
Dear Ron Paul,
Why do the masses think we can spend our way out of trouble? When my family spends to much and overextends (credit), we have to cut back. Why do so many think credit, easy money, and spending money we don’t have equals economic recovery? Did I miss something here?
Sincerely,
Wayne Pierce
Comment by Mike
October 3rd, 2008 at 1:06 am
Dr. Paul,
You, and a few others, seem to be the only ones that understand the causes and effects of our economy. Amidst this political horse race between Obama and McCain, who don’t seem to have any idea whatsoever of what’s going on, how many more of these media interviews do you think you have to do before the media starts working for the people and demanding tough answers from criminal politicians, instead of helping grease the fear machine of Washington? Do you think George Washington would be ashamed that a city after his own name has brought the American people so much despair? I believe not having you in the presidential race will be the biggest missed opportunity for freedom in our country’s modern history. Thank you.
Comment by Mario Ochoa
October 3rd, 2008 at 1:13 am
Why the Federal Reserve looks for Congress approval for bailouts, when they have done it constantly without it?
Thank you.
Comment by Michael OBrien
October 3rd, 2008 at 1:32 am
Congressman Paul:
You’ve warned for years this crisis was coming, asserting the root cause is a dollar bubble produced by Federal Reserve Bankers’ manipulation of the price of money and credit. Why is free market Capitalism getting blamed when we actually have is Statism ?
Comment by tom oleary
October 3rd, 2008 at 1:33 am
Dr. Paul,
What will it take to actually end the Federal Reserve? It doesn’t sound like many in congress will ever come around on this, so can the citizens do it without the congress? You’re an inspiration to all of us. Thank you
Comment by Chad
October 3rd, 2008 at 1:37 am
Hello Cheryl,
Can you please ask Dr. Paul if he is aware of the portion of the bill that Representative Brad Sherman of California refers to in this clip from CNBC?
Does he have first hand knowledge of Secretary Paulson refusing any similar provision as described by Mr. Sherman?
http://www.cnbc.com/id/15840232?video=873682522
Could you or your resources please confirm the validity of Mr. Sherman’s claim?
Folks will be understandably upset if this is indeed the case and a non-trivial amount of this $850 Billion ‘No Banker Left Behind Bill’ goes overseas.
Thank You,
Chad
########### TRANSCRIPT BEGIN ###########
Rep. Brad Sherman, D California:
Larry you have to read the bill. It’s very clear. The Bank of Shanghai can transfer all of its toxic assets to the Bank of Shanghai of Los Angeles which can then sell them the next day to the Treasury. I had a provision to say if it wasn’t owned by an American entity even a subsidiary, but at least an entity in the US, the Treasury can’t buy it. It was rejected.
The bill is very clear. Assets now held in China and London can be sold to US entities on Monday and then sold to the Treasury on Tuesday. Paulson has made it clear he will recommend a veto of any bill that contained a clear provision that said if Americans did not own the asset on September 20th that it can’t be sold to the Treasury.
Hundreds of billions of dollars are going to bail out foreign investors. They know it, they demanded it and the bill has been carefully written to make sure that can happen.
########### TRANSCRIPT END ###########
The relevant sections from this draft are :
http://www.latimes.com/media/acrobat/2008-09/42631254.pdf
########### BILL TEXT BEGINS ###########
3 SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES
4 AND CENTRAL BANKS.
5 The Secretary shall coordinate, as appropriate, with
6 foreign financial authorities and central banks to work to
7 ward the establishment of similar programs by such au
8 thorities and central banks. To the extent that such for
9 eign financial authorities or banks hold troubled assets as
10 a result of extending financing to financial institutions
11 that have failed or defaulted on such financing, such trou
12 bled assets qualify for purchase under section 101.
7 SEC. 101. PURCHASES OF TROUBLED ASSETS.
8 (a) OFFICES; AUTHORITY.—
9 (1) AUTHORITY.—The Secretary is authorized
10 to establish a troubled asset relief program (or
11 ‘‘TARP’’) to purchase, and to make and fund com
12 mitments to purchase, troubled assets from any fi
13 nancial institution, on such terms and conditions as
14 are determined by the Secretary, and in accordance
15 with this Act and the policies and procedures devel
16 oped and published by the Secretary.
SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES
4 AND CENTRAL BANKS.
5 The Secretary shall coordinate, as appropriate, with
6 foreign financial authorities and central banks to work to
7ward the establishment of similar programs by such au
8thorities and central banks. To the extent that such for
9eign financial authorities or banks hold troubled assets as
10 a result of extending financing to financial institutions
11 that have failed or defaulted on such financing, such trou
12bled assets qualify for purchase under section 101.
########### BILL TEXT ENDS ###########
Comment by mike
October 3rd, 2008 at 1:38 am
How do you think the Chinese and Russians will factor into the coming collapse of the dollar?
Why is Bernanke still at the helm when he helped cause this mess?
Is there a conflict of interest with Henry Paulson and Goldman Sachs?
Many congressmen have reported being swamped by faxes, e-mails, and phone calls from constituents who do not want them to vote for the bailout - and yet they’re still voting for it. How do you feel about this?
Comment by Dana Swan
October 3rd, 2008 at 2:10 am
Cheryl,
please ask Ron Paul if the fact that the USA was a cash based economy in the last depr