Comments on: Big Government Responsible for Housing Bubble

By: Jordan

Jordan — Thu, 15 May 2008 13:56:07 +0000

Andrew –

The mortgage crisis WAS caused by artificially low interest rates. The Fed is more that JUST a bank, because it sets the rate at which all banks borrow its funny money. The Fed is a government sanctioned CENTRAL BANK engaged in market manipulation through the control of money and credit.

If all banks set their own rate according to MARKET pressures, this recession would not be happening.

By: Andrew Jorgensen

Andrew Jorgensen — Thu, 15 May 2008 06:43:45 +0000

Ron is using the government’s bail-out as leverage to convince us that government regulation of markets is ALWAYS a bad thing. But the mortgage crisis was not caused by artificially low interest rates. As you (indirectly) point out yourself the Fed is really just a bank, a participant in the market not an outside force.

The real culprit is greedy members of the market offering loans to people who did not qualify for them. Lenders lied to investors and and encouraged their clients to lie with them. This should have been illegal.

In general market forces can be trusted to be more efficient than government manipulation. And a bail-out is a bad idea for the reasons stated in the article. But the current crisis demonstrates the NEED for regulation. It shows in living color how market forces can bring disaster if not kept in check.

By: Dyllionaire

Dyllionaire — Wed, 14 May 2008 16:42:11 +0000

Ron says: It is neither morally right nor fiscally wise to socialize private losses in this way.

I agree. If those that suffered private losses are bailed out, how will they learn. It is a simple fact of life that people have to go through bad times. That is the only way to grow and become better.

For the United States to become financially stronger, we have to have bursts. I say bring it on!

Oh yeah, I’m also writing in Ron Paul for 2008.