Here's Texas Congressman Ron Paul on CNN, commenting on the root causes of our financial meltdown.
Most of this information was available four or five months ago, in his book "The Revolution: A Manifesto".
It's one of those books that's so good, you have to stop reading every few sentences to think over the implications of what the author saying.
Finishing it a few weeks before a major financial crisis has been an unnerving experience.
In a truly caring society, this little book would already be required reading in High School Government classes. The chapters entitled "Economic Freedom" and "Money: The Forbidden Issue" should be tattooed onto Paulson and Bernancke's forearms. Remember the Alabama courthouse that tried and failed to have a marble statue of the Ten Commandments in one of the courtrooms? Let's put copies of this book in a glass case in that space.
Friends and family, get ready. Ron Paul is what I'm getting you for Christmas.
Here's a brief excerpt from the CNN editorial:
Unfortunately, the government's preferred solution to the crisis is the very thing that got us into this mess in the first place: government intervention.
Ever since the 1930s, the federal government has involved itself deeply in housing policy and developed numerous programs to encourage homebuilding and homeownership.
Fannie Mae and Freddie Mac were able to obtain a monopoly position in the mortgage market, especially the mortgage-backed securities market, because of the advantages bestowed upon them by the federal government. Laws passed by Congress such as the Community Reinvestment Act required banks to make loans to previously underserved segments of their communities, thus forcing banks to lend to people who normally would be rejected as bad credit risks.
I can't believe that people are wanting to solve this problem with more government intervention.