Ron Paul: Buying bad debt is the wrong solution

[CrimsonWhite]

Ron Paul weighs in and I have to say, I agree with him.

(CNN) -- Two days after the House rejected the $700 billion bailout bill, the Senate is set to vote on the rescue plan for financial institutions.

The vote is scheduled for after sundown Wednesday.

Republican presidential nominee Sen. John McCain, Democratic nominee Sen. Barack Obama, and Obama's running mate, Sen. Joe Biden, all said they would be present for the vote.

Speaking to CNN's John Roberts on Wednesday, House Financial Services Committee member and former Republican presidential candidate Rep. Ron Paul discussed why he thinks the bailout bill is the wrong solution to the economic problem and what he would do to secure financial security.

Ron Paul: Buying bad debt is the wrong solution - CNN.com

 

[HoleInTheVoid]

This is like asking Ron Paul if water is wet.

"Yes, but it is all a neocon plot to keep the Jews from getting thirsty."

 

[seth1492]

I think the bailout is not right either, but it doesn't take Ron Paul for me to understand that. I am glad that he is saying it though. The bailout isn't right economically or morally. It wont teach the corporations who invested riskily or the citizens that took the risky loans anything. It would be a slap on the wrist while in the other hand giving them an allowance to do it again.

 

[Zoomie1980]

I think the bailout is not right either, but it doesn't take Ron Paul for me to understand that. I am glad that he is saying it though. The bailout isn't right economically or morally. It wont teach the corporations who invested riskily or the citizens that took the risky loans anything. It would be a slap on the wrist while in the other hand giving them an allowance to do it again.

We should have learned from Japan in the 1980's. They pulled out all the stops to prevent a deep Japanese recession following their banking excesses. They stopped it alright, but bought 20 years of economic STAGNATION of near ZERO growth. They watch China go from a third world broken economy to blow right past them, and now the same with Korea.

Governments HAVE GO TO STOP BEING AFRAID OF RECESSIONS!!!! They have got to stop trying to PREVENT them. Recessions are a PERFECTLY NORMAL and HEALTHY part of the capitalist economic system. In good times excesses develop that eventually have to purged. All government should do is put in daily trading limits to prevent panics since most floor traders are a pack of lemmings.

In this crisis, NOTHING will work until houses, in particular in the Sun Belt and California, especially, find their REAL bottom! Until that time, we will accumulate ever more bad debt. $700B is nowhere NEAR what we are going to eventually see. I the housing market has AT LEAST another TRILLION to lose yet, maybe more, as that is how RIDICULOUS California home prices got to. Watch the Silicon Valley real-estate market. When a 2000sq ft home in San Jose in good shape goes for about $250,000-$300,000 then California prices will have reached their natural value....and we will have found the bottom of this crisis. Not until then. (Right now that size home is still going for well over $500,000 in most cases).