In this short video, former presidential candidate Ron Paul takes issue with multibillionaire investor Warren Buffet over the bailout.

Video.

He's right again.

__________________
"The only title superior to President of the United States of America is Citizen."

Did you know the word "gullible" isn't in the dictionary?

Ok. First a question. Is the government printing that $700 billion or is it taking out debt or something of that nature?

Now even taking out that much debt can have an inflationary effect. But nothing like printing money.

Secondly it is interesting if it's believed that we'll actually make a profit on this. As I understand it the government is buying up a large number of illiquid assets. Which I take to mostly mean the government is buying up piles of foreclosed homes by taking on the partially paid loans. Then seeing what they can sell them for. Now if that's how it works it could be that the government could come out ahead. Even with the bubble bursting, if the government picks up loans that are partially paid they could still come out in the green given time.


At any rate not propping up banks is a significant part of the great depression, so I'm very very leery of doing it again.

As is often the case, Paul has the advantage of advocating what we aren't doing. i.e. someone else could claim that everything would be hunky dory if everyone at the fed would wear plaid. That probably wouldn't solve the problem, but since they don't go with it that person can always claim that plan plaid would have worked.

My understanding is that the presses have been running and continue to run over at the Treasury, you wonder why the Euro is at 1.50 to the USD.
Second question, where is it in the Constitution that we can bailout one or two companies,banks, businesses but not all? Equal protection and all???

With inflation still rising I can see the next problem around the bend, people will stop paying their credit cards too, figuring Uncle Sam can bailout B of A as well, why not? China owns them too don't they?

__________________
"The only title superior to President of the United States of America is Citizen."

Did you know the word "gullible" isn't in the dictionary?

Loved Paul's response to Warren Buffet saying that he wished he could get in on buying the bad assets from the banks. If there is so much money to be made on them then private investors like Warren Buffet would be buying them.

According to most economists the US taxpayer will end up losing between 14% and 50% of the bailout money based upon similar bailouts in the US and elsewhere over the last 20 years. The idea that the US taxpayer would actually make any money is a hoax.

Ecominists also state that the bailout will not stop the recession we are in and it will last for another 2-4 years. This is related to the tightening of spending habits which has nothing to do with the financial liquidity of Wall Street.

We are also seeing that the "meltdown" is limited because some banks like Wells Fargo are in a good financial position is actually looking at the acquisition of the banks that are failing.

__________________
Soldiers swear to protect and defend the Constitution with their lives.

Politicians swear to protect and defend the Constitution with someone else's life.

Shiva, do you have any source info or links for my own intel on the "economists" I could use the ammo in another arena. Thanks.

__________________
"The only title superior to President of the United States of America is Citizen."

Did you know the word "gullible" isn't in the dictionary?

Well they have to keep printing to replace damaged bills. The question is whether they're increasing the number of dollars in the world. On that note if they don't I don't know if they'd actually physically print the money. I think they might just toggle some ones and zeros and fill out some forms.

I would like to see all the banks that failed get bought out and all their upper management punted, ideally without the customary golden parachutes and the like.

Do you remember the inflation in Germany after the war? They printed over the stamps with "million" when it was a 1 mark postage. I have sets of them, too bad they didn't hold any value. Our dollar is losing value in part to the production of more currency. Where did you think that rebate check came from? Inflation is rising in part from more greenbacks floating around.

Reading suggestion, "Bad Money" by Kevin Phillips.

The Debt is killing our country and nobody seems to want to face the music.

__________________
"The only title superior to President of the United States of America is Citizen."

Did you know the word "gullible" isn't in the dictionary?

There are numerous sources for economists that are skeptical of the bailout and a simply search will provide them. I can give you a couple:

http://news.yahoo.com/s/politico/200...politico/13689

http://www.philly.com/philly/busines...f_bailout.html

__________________
Soldiers swear to protect and defend the Constitution with their lives.

Politicians swear to protect and defend the Constitution with someone else's life.

WB wants his stocks to keep going up...'Honor dies where interest lies.'

WB says his kids will have a better life than him and their kids will have a better life their parents and on and on.

Maybe for a billionaire but not for the average Joe or Jane.

Quality of living has gone downhill tremendously just in the last couple of decades.