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Saturday October 4, 2008 1:45 pm

Do People Give Ron Paul Enough Credit?

Posted by Sal Traina Categories: US Economy, Videos, Wall Street,

He predicted this mess we’re in now in 2003, almost three years before John McCain predicted it. Ron Paul is not my first choice for President, but he deserves way more credit than he gets. His strong suit is economics, and he could mop the floor with McCain and Obama on this subject.

On Sept. 10, 2003, U.S. Rep. Ron Paul, R-Texas, testified before House Financial Services Committee, which was holding hearings regarding special privileges extended to government sponsored enterprises (GSEs). Think Fannie Mae and Freddie Mac. In his testimony. Paul criticized such privileges in general and warned of the potential for disaster posed by government involvement with Fannie and Freddie specifically.

“I hope today’s hearing sheds light on how special privileges granted to GSEs distort the housing market and endanger American taxpayers,” Paul said. “Congress should act to remove taxpayer support from the housing GSEs before the bubble bursts and taxpayers are once again forced to bail out investors who were misled by foolish government interference in the market.”

On the same day, Paul introduced the “Free Housing Market Enhancement Act.” The legislation would have removed government subsidies from the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the National Home Loan Bank Board. The bill had no cosponsors; it stalled in the committee process.

This was more than a year before his Republican colleagues tried to do something about it. It was also a year before John McCain predicted this, and tried to reform Fannie Mae and Freddie Mac. Check the video of a hearing held in late 2004 where Dems. defend their buddies who are running these big mortgage companies.



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