Comments on: What the FED has done to Us? Subprime crash : by Ron PAUL? http://discountmortgagenow.com/what-the-fed-has-done-to-us-subprime-crash-by-ron-paul/38/ Discount Mortgages Wed, 08 Sep 2010 06:43:20 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Allan http://discountmortgagenow.com/what-the-fed-has-done-to-us-subprime-crash-by-ron-paul/38/comment-page-1/#comment-72 Allan Wed, 29 Apr 2009 03:22:38 +0000 http://discountmortgagenow.com/what-the-fed-has-done-to-us-subprime-crash-by-ron-paul/38/#comment-72 There is almost no truth in this at all. First, the Federal Reserve does not control money creation. It targets the interest rate -- the federal funds rate in particular. Second, inflation has been running at 3 to 3.5 percent over the last several years. This is hardly inflationary, especially when we compare it to double digit rates (as high as 15%) back in the 80s. Ron Paul does have a point, however, when he suggests more bank regulation. However, banks were not doing anything legal during the real estate boom. How can the Fed tell banks not to do something legal??? Congress needs to pass stricter laws, if they want to make this behavior legal. Only then could the Federal Reserve and other bank regulators do something serious. There is almost no truth in this at all. First, the Federal Reserve does not control money creation. It targets the interest rate — the federal funds rate in particular. Second, inflation has been running at 3 to 3.5 percent over the last several years. This is hardly inflationary, especially when we compare it to double digit rates (as high as 15%) back in the 80s.

Ron Paul does have a point, however, when he suggests more bank regulation. However, banks were not doing anything legal during the real estate boom. How can the Fed tell banks not to do something legal??? Congress needs to pass stricter laws, if they want to make this behavior legal. Only then could the Federal Reserve and other bank regulators do something serious.

]]> By: anaise http://discountmortgagenow.com/what-the-fed-has-done-to-us-subprime-crash-by-ron-paul/38/comment-page-1/#comment-71 anaise Mon, 27 Apr 2009 19:18:02 +0000 http://discountmortgagenow.com/what-the-fed-has-done-to-us-subprime-crash-by-ron-paul/38/#comment-71 You go RON PAUL! But then again, he's a politician looking for votes. Ho-hum. You go RON PAUL! But then again, he’s a politician looking for votes. Ho-hum.

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