The gov't should stop picking winners and losers because they're notoriously bad at it.

 

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Even if the government was good at it, they would still be bankrupt ethically, morally and legally for picking anyone. That game just needs to end [period]

Ron Paul is the blind squirrel. The primary way the Fed fights recessions is with interest rates. The biggest economic sector impacted by interest rate moves is housing and construction. So in 2001 he is outraged that the Fed is lessening the recession by boosting housing. RP is outraged that the Fed didnt sit idly by and cheer on the recession as it dragged the economy down in 2000.....and strangely he did not applaud the Fed for following his advice in 2007/08 by sitting on its hands while the economy fell off a cliff.


The Central Bank closely following the Ron Paul plan is the Euro Central bank....raising rates to protect against inflation, absolutely refusing to use currency rates to boost production...and they are getting the crushing recession that Ron Paul wants and the US was largely able to avoid.


I dont have any desire for the constant economic destruction Ron Paul feels we all deserve. The economy and our workers dont need to suffer for the imaginary sins in Ron Pauls head. His gold standard and the resulting massive deflation during the economic downturn would have been catastrophic economically. We should all be glad we didnt have to suffer like Ron Paul wanted us to.

Your Keynesian pablum has been proven wrong multiple times going all the way back to 1920.

http://www.youtube.com/watch?v=czcUmnsprQI - Tom Woods Why You've Never Heard of the Great Depression of 1920
http://www.mmisi.org/ir/44_02/woods.pdf

1920: The Great Depression That Wasn't
http://www.realclearmarkets.com/articles/2010/09/22/1920_the_great_depression_that_wasnt_98679.html

http://newsroom.ucla.edu/portal/ucla/FDR-s-Policies-Prolonged-Depression-5409.aspx

Also, Japan has been in an economic malaise for twenty years due to Keynesian economics. But I know why you people are so committed to Keynesian economics. It is because it gives you command & control that enables big government and because you people love your precious wars. Without Keynesian economics you would have neither of those to the staggering degree that you have them now.

The Paul Krugmans of the world are statists and murderers.

The Fed’s inability to account for the housing bubble was a major fault of theirs but I don’t base that on quotes from Ben.


Your links did demonstrate that there was a lot of people saying there was a bubble which is exactly my point. The fact that investors will ride an upswing is nothing new and it really isn’t the job of the Fed to tell people that they are making bad decisions, even if they ask.


The real problem with the crash has more to do with large and sudden capital flows and failures made at the ratings agencies. Investors will invest based on risk factors so if you have a government regulation that results in high risk loans the market will still limit it’s investment into those financial instruments. What happened in the crash that really caused problems was the failure of rating’s agencies to calculate risk. The rating of debt instruments literally went from AAA to junk over night. Not only did that happen but the debt instruments in question were just a mix of risk factors which made it impossible to rate.


The guilty parties realized they were screwed so they took out insurance. This is where AIG enters the equation and gets reamed.


Fannie and Freddie played their part in all of this but it wasn’t in pushing high risk loans but their role in packaging them together and trying to establish them as lower risk than they were.


All of this was combined with investors that really have no reason to be holding US dollars other than the fact they are manipulating our currency in an attempt to increase production in their country.


Ron Paul’s understanding of all of this begins and ends at “ZOMG government.”

 

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Ohh look a bunch of so called economists using very specific ways to measure the severity of a recession in an attempt to over state it while completely ignoring what actually caused the price change and the recovery.

 

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How would you suggest states attract new businesses without offering incentives? It's a tad more than increasing employment and it's a necessary thing for states to do.

 

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What makes it necessary is other states doing it.

 

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I think all the Mises nuthuggers should all go live together, preferably in Austria, preferably in a part of Austria that has no Internet access.

 

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Sin, you're blaming the symptoms and not the causes. Dr Paul long before the others called out the causes and pointed out the symptoms. That is just the historical facts that can't be twisted or explained away no matter how much you try. And that is why the more people who actually take the time to look at his history and track record are won over. The facts speak for themselves.