Mortgage megaliths Fannie Mae and Freddie Mac are being taken over by Uncle Sam. Lehman Brothers is wrecked. John McCain’s answer to the crisis — his answer to almost everything, in fact, including the “problem” of free speech — is to demand more government control. But an increasing number of Americans are realizing that McCain is wrong and that Ron Paul was right all along about the consequences that must follow the malinvestment brought about by the Federal Reserve’s monetary meddling. Even some in the media are coming around. Atlantic Monthly blogger Andrew Sullivan, for example, writes:
What we are dealing with in detail I am not professionally qualified to discuss (I’m not Sarah Palin, I know my limits.) But what we are dealing with in the grand scheme of things seems pretty simple. The US has been living beyond its means. The US has been spending and borrowing as if its economy were fiscally secure; and the demand for more and more from below combined with signals of total laxity from the top has led to a massive over-reach in terms of personal and public debt. In the end, gravity and reality count, whatever the Bush-Cheney propagandists want to insist.

Like the invasion of Iraq, for which the US is still paying; like the massive Bush tax cuts, which were never matched by cuts in spending but combined with massive increases in spending; the home-ownership-as-speculation bubble eventually hit the reality this country’s leadership has for so long denied.

Sullivan stops at the fiscal level and doesn’t push deeper to the underlying monetary abuses that have, in fact, raised taxes by inflating away the very currency in our pockets. He’s correct as far as he goes, though: the government is insolvent, and the situation will keep getting worse — though we have cause for hope in the fact that Ron Paul’s message, slowly but surely, is breaking through.

Unfortunately it's a gigantic house of cards and our government (that's us) is holding most of them.

post all the little smileys you want, but Dr.Paul predicted all the trouble with Fannie and Freddie 5 freaking years ago.

Why is it that the Dr. is right about so much, but gets treated with such disdain?

If you don't agree then come with something, especially you, wouldee, a smiley response? Thats just disappointing.

Neither candidate has the balls to tell us, the fu6king glorified "American People" that we are part of the problem that happened today. We're all over leveraged to buy all the $hit we don't need and the bill's coming due.

t22learner is right on to the truth in his post.

What happened to fiscal responsibility?

Individuals are not allowed to conduct their affairs this way but.....

Oh well...to hell with it...

The truth be damned.

i don't have any **** i don't need.I can barely afford the **** I do need..

post all the little smileys you want, but Dr.Paul predicted all the trouble with Fannie and Freddie 5 freaking years ago.

Why is it that the Dr. is right about so much, but gets treated with such disdain?

If you don't agree then come with something, especially you, wouldee, a smiley response? Thats just disappointing.

===================================================

warmachine.

relax

have a bit of a sense of humor, war.

there was a book written in 2000 about the coming reaL ESTATE CRASH.

i GAVE SO MANY COPIES AWAY THAT i NEVER RETAINED ONE.

I cannot remember the author's name.

It was an excellent work.

He outlined the weaknesses of freddie and fannie before the others.

The Defds tried to adjust for his warnings but the market kept reeling out of control despite the warnings.

the tip off was creative financing.

The baseline for annual income/ house price should be no m,ore than 1/3.

But in markets like the SF Bay Area, that baseline was 1/12 at the time and getting worse all the time.

I warned everyone I could.

Few listened.

Many think I am a prophet. LOL

imagine that?

It had been widely known in the construction industry that the market was overheating in the Bay Area since 95.

No one is listening, my friend.

sometimes a little brevity is all I can muster.


and where are we going?


to a prolonged period of economic stagnation and a heightened awareness that less is more.

The frenzy and volitility of capital markets are sounding the death nell and the house of cards is falling.

The frenzy over a quick fix for shareholdes and investors is making the money managers do very short sided and desperate moves hoping against hope that they can clear their books of losses before their brokerage houses all fall for lack of liquidity and equity.

It's over.

all that is left is a mess.

and no one wants to call it.

denial.

So long as we have an economy based on Spend, Spend, Spend, we are going to have this type of crisis.

I don't know the answer, but the economy is so focused on spending, that the government sends out "spending money" checks when it is in trouble. And this time, it wasn't enough.

Until they can come up with a better model, I don't see anyway out of this financial crisis.

Ah, the magic words, Fiscal Responibility.


Only the NeoCons could have sunk the GOP so far that the Democrats have more than solid footing in which to criticize the Reps over their lack of Fiscal Responibility.

LOL.

Wouldee, I had to give you some grief, you and I tend to be fairly specific and even, dare I say it, long winded in our responses.

Now thats a response, but you neglect the most important thing, a Federal Reserve system that has controls over our monetary systems,but are only beholden to their member banks.

I disagree though, due to the propping up of the failing businesses, it's far far from over. If the market had been allowed to bleed itself of the poisons, it might have corrected itself in a year, maybe a couple, but now we are watching another bubble being manufactured, except now when this bubble pops, the Federal Government is going to transfer that to us, we're going to get left holding the bag.

the bubble is bigger than you think, though.

they are all panicked.

liquidity is dangerously on the edge and the daily transfers of the claring house are on the brink of insolvency.

can't fix that.

Nixon took the US off the gold standard, where others failed.

Madison is the dead cat floating down the river.

Hamiltonian models got this mess rolling.

It didn't matter which party would be in play when the bottom fell out.

The politicians were duped into thinking that monetary policy had to include increasing the money supply to bolster a growing middle class.

That was the lie.

The opposite occured and precisely as Madison had warned in the Federalist Papers over 200 years ago.

1974 was the watermark year, not the watershed year.

I am far more cynical than you are.

My idealism was replaced long ago with an undestanding of what works in the business world.

I have opted out for the most part.

I put little stock in this country's ability to do the right thing at all.

It makes me laugh so I won't cry.

But still, the USA is the best home on the planet and I will defend this land if anyone wants to come and get it.

I got a $hitstorm waiting for them. LOL

peace.

I am a sweet humble guy. no meanness.


can we say, malitia? pun intended.

no, but I can spell it.

the only problem is, that most survivalists are criminals and mormons.

That post makes me want to build a bunker and horde water, can food and ammo!