Ron Paul on the housing bailout: “…you just delay the inevitable”

[archerships]

“If you want to get back to normalcy, you have to let the market liquidate the bad debt and the bad investments. But it’s tough politically, and that’s why we can expect the Fed always to inflate. Politicians will never allow the correction to come. And that’s the fallacy. By bailing out and propping up, you just delay the inevitable. Sure, they may pull this out and the markets may do well Monday, but it won’t stop it. It will come back again, and the correction will come until you liquidate all the bad debt. But propping it up, it doesn’t help the situation long term. Short term it’s a good political answer.”

Via ernunnos (who also did the transcription).

Comments

[infrogmation.livejournal.com]

One detail: I would have advised against the echo of Harding's "Return to normalcy" motto, but of course those of us with any awareness of administrations before Britney Spears are an insignificant voting demographic.