May 12, 2008

Ron Paul on the housing bust

The situation facing us now in the mortgage industry has its roots in the Federal Reserve's inflationary monetary policy. Without addressing the roots of the current crisis, any measures undertaken to improve the situation will be doomed to fail.

As with asset bubbles and investment manias in past history, the fuel for the current housing bubble had its origins in monetary manipulation. The housing boom was caused by the Federal Reserve's policy resulting in artificially low interest rates.

~ Congressman Ron Paul, Statement before the Financial Services Committee, September 20, 2007

(This quote appeared in "What the Fed Has Done To Us," LewRockwell.com, September 28, 2007.)

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