5 thoughts on “The Dilemma

  1. Someone knows what will happen with California. The bad thing is that a chosen few have inside information, the good thing is that humans can’t keep a secret for long.

  2. Ron Paul’s call for Federal Reserve Audit supported by 250 members of Congress.

    Corbett Daly: Another hot topic for regulation is the Commodities Futures Trading Commission. This week they have a proposal to impose more trade restrictions on speculative trading in the energy markets. A lot of business community and some consumers say that this may go too far. Do you agree with that?

    Ron Paul: Well, it was too far when they first started. I don’t believe in that kind of regulations. We didn’t have a Depression because we didn’t have enough regulation, but they said we didn’t have and that’s when the SEC and these other organizations came in. So when Enron failed they said, “We didn’t have enough regulations,” but then they passed Sarbanes-Oxley and they go on and on and they always say we need more regulations because they fail to see what causes the problem.

    The problem comes from the mischief at the Fed because they create artificially low interest rates which create the atmosphere of a bubble and all the mal-investment and bad debt. So you can’t compensate by more regulations. What you want is the market to regulate this, you want people to go bankrupt. You want a correction. They don’t allow corrections.

    We need a housing correction, we need the prices to go down, we need less houses being built, we need the markets to be cleared. But no, we have to keep building houses and keep the prices up and do all these things. The central economic planners doing monetary policy is the worst way in the world.

  3. I’m not an expert on this california situation, however, I will say that if california owes any money to major banks (which seems like the case…I remember reading that JPM, WFC, and BOA were going to refuse the IOU’s) I will gladly wager 10 years of my life that california is bailed out so that they can continue paying the banks. It may be done under the guise of “keeping schools open” or some nonsense like that, but don’t be fooled: keeping the interest payments flowing will be the prime motivation for the coming bailout. Deep, deep capture.

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