Fo Shizzle Wrote:I thought Dr. Pauls answer to the first question summed up why he could NEVER be elected president....It was a brilliant 2 minute explaination using Austrian economic theory that explained why we are NOW and HAVE been in a recession due to artificially low intrest rates caused by GOVERNMENT INTERFERENCE in free market forces...There are very few people that actually are educated enough(including the other candidates) to even understand what he was talking about...It was as if someone had suddenly spoken in an unknown language...Its a shame...because he was correct in his assertion and nobody understood him.
Economic Theory is something that maybe 5% of the US population really understands. Joe Blow really only understands the mortgage note, the price of gasm, bread and milk.
The Fed will be cutting interest rates again soon. They have to in order to stabilize the ARM crisis.
You can't let interest rates go up in an election year. Can't piss off the voters
1. ARMs go up.. foreclosures happen.. people out on the streets.
2. Congress F'ed up big time on the 2005 "Bankruptcy reforms"...no longer consumer friendly, lots of red tape... and money that you could use to get current on the house note you have to pay the bankruptcy attorney.
3. If you let the subprimes go under, banks will go as well and you will have the equivalent of the mid-late 80's RTC but this time holding residential instead of commerical property.
4. Government has to regulate or at least stabilize the situation.. for the moment....
Not the best situation, but hey, we are fighting a war..