Telling It Like It Is To Bernanke

Discussion in 'Economy' started by Paulie, Nov 10, 2007.

  1. Paulie
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    Paulie Platinum Member

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    Republican Presidential candidate Ron Paul, in various commitee meetings with Ben Bernanke:

    <object width="425" height="355"><param name="movie" value="http://www.youtube.com/v/yAwvlDJgJbM&rel=1"></param><param name="wmode" value="transparent"></param><embed src="http://www.youtube.com/v/yAwvlDJgJbM&rel=1" type="application/x-shockwave-flash" wmode="transparent" width="425" height="355"></embed></object>
    House Financial Services Q&A

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    A different session, Part 1

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    Part 2

    There are many more, and if you care enough you can go and find them. I don't see Bernanke giving a straight answer at all.

    I don't want this thread to turn into a Ron Paul hate thread. I reserve the right to have it deleted or closed if it does, because I'd like to have a serious discussion. It doesn't necessarily have to be about Ron Paul specifically, but I used his testimony to make a point. I'd also like to limit the discussion to members who have a better understanding of US economics.
     
  2. eots
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    eots no fly list

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    he cant be ignored..unless he suffers the same fate as kennedy, over this next year he will become a front runner
     
  3. Foxfyre
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    Foxfyre Eternal optimist Gold Supporting Member Supporting Member

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    I think Ron Paul is wrong about the issue(s) he was addressing. Low interest rates helped many millions of Americans refinance their homes and/or move into better ones and that, plus more favorable tax policies, stimulated the economy that has increased wages and personal wealth. The 'housing bubble' fiasco occurred mostly through unwise speculative investments and ignorance of home owners signing the loans. The fix comes through application of fair trade practices which would require lenders to provide full disclosure as to the risks of ARMs and what they should expect from them. People who did not take the ARMs and took fixed rates benefitted enormously.

    As for the low dollar, there are many informed opinions who do not see that as a negative thing despite the angst of the Europeans and Japanese who view it as disastrous:

     
  4. Paulie
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    Paulie Platinum Member

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    Low interest rates were the fault of the Fed. The only way you can balance out the monetary system after cutting rates is by inflating the monetary supply by printing more paper notes. Americans at large can't be blamed for wanting to own homes, and signing mortgages while rates were low. Who WOULDN'T? If you could afford that payment at the time, you signed the mortgage. Owning a home and creating an asset for yourself is something that should never be discouraged. I'll agree with you on the ARM issue, as it's ridiculous to let the bank adjust your rates...how can anyone really be certain what the Fed will do in the future to affect a bank's decision to adjust rates accordingly.

    The main reason why people can't make due on their mortgages NOW, whether ARM or not, is that their dollar is losing it's value. The Fed cut those rates down to near 0, and had to balance it by printing more money, thereby devaluing the dollar. It has caused prices to soar, which has left the middle class homeowner in a situation where they just can't afford that mortgage payment anymore.

    Americans are insatiable spenders, that much is certain, but the current housing bubble crisis is no different than any other inflationary bubble throughout history. Empires of the past that utlized this type of monetary policy have always collapsed from the same kinds of crises.

    Consumer over-spending and ARM's ALONE can not be blamed for what is happening to our middle class and our economy right now.

    The only people who could POSSIBLY think a declining dollar is positive, are the one's who have so much, it would probably never affect them.

    To say a declining dollar is positive, is insane, no matter what your economic education.

    My son is 3 months old. When he was born back in August, a case of Similac formula was $25. Now, it's $30. In 3 months, the cost went up $5. That is the result of the value of the dollar decreasing. I'm not rich, that shit HURTS. And it's just one example of how little our dollar is buying nowadays. Sure, if I was a millionaire, I probably wouldn't need to worry. I'm an average middle class citizen in a dual income rented household, and each year it's becoming harder and harder to make ends meet.

    The middle class is the backbone of this nation, but it's slowly becoming bankrupt. A nation can only fall under such circumstances.
     
  5. Toro
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    Toro Diamond Member

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    No he won't.

    I'll bet any amount - $100, $1,000 $10,000 - anything you want, that at no point, Paul will be leading the Republican candidates.
     
  6. Paulie
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    Paulie Platinum Member

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    Please don't comment in this thread unless you're going to address the topic. That goes for everyone. I'd like to have a real discussion on this, and from what I've seen about you Toro, you should have more to contribute to a thread like this than a smeer of Ron Paul.
     
  7. Ninja
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    Ninja Senior Member

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    Yeah, Toro. Only the Paulestinians are allowed to shit on other candidates' threads :cuckoo:
     
  8. Toro
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    Toro Diamond Member

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    That was a great monologue by Ron Paul. He is 100% right.

    When he made that speech, the floor traders on the Chicago Mercantile Exchange cheered.
     
  9. Toro
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    Toro Diamond Member

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    Eots said he will be the front runner, "unless he is shot." That's my way of saying, no way. It shouldn't be particularly difficult to understand that I wasn't smearing Ron Paul.
     
  10. Foxfyre
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    Foxfyre Eternal optimist Gold Supporting Member Supporting Member

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    The Fed lowers the interest rates ONLY when inflation is low and the economy is not excessively accelerating. They do NOT offset lowered interest rates by printing more money. I'm not sure where that screwy idea came from, but Ron Paul is as wrong about that as he is wrong about a weak dollar being bad for the economy across the board. Did you even read the article by the bonafide economist (Stanford PhD)? On what basis can you say he doesn't know what he is talking about and Ron Paul does?

    Inflation certainly has not increased 20&#37; in the last three months, so I would look elsewhere for the reason the price of Similac going up 20%. It is hghly unlikely you can pin that on either low interest rates or a weak dollar either.
     

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