….. the government’s policy of diverting capital to other uses creates a short-term boom in housing. Like all artificially-created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they would have otherwise been…

….Federal Reserve can stave off the day of reckoning by purchasing GSE debt and pumping liquidity into the housing market, but this cannot hold off the inevitable drop in the housing market forever. In fact, postponing the necessary, but painful market corrections will only deepen the inevitable fall….. the greater the effects across the economy when the bubble bursts….”

I see that you got the video for the youtube – thanks Ilana. I became too busy to continue looking for it.

I wanted to ask you what you thought of the current political climate’s wierd dual edged sword.

Currently, we live in the biggest State ever, and while we are (mostly), politically free, we are not so much economically. Secondly, while the State is everywhere in academia, at no other time have supporters of freedom (such as Ron Paul, Lew Rockwell, and even Dr. Robert Murphy, a market anarchist) been so visible in the public sector. I was shocked to see some clips of Professor Murphy on the TV talking about oil!

I am also wondering if we should really say that there is a difference between economic freedom and political freedom. If you have less to do with your property, aren’t you less free?

In addition, Americans are too obsessed with freedom of speech. They constantly babble about it as if it nullifies bad practices of the State. ‘I’m in jail for life because of tax evasion, but Hey! I have freedom of speech!’ Ridiculous.

The whole purpose of freedom of speech was not to make idiot music (rap) or lame TV shows (sex and the city); it was to stop the encroachment of the public (state) sector in the private (market) sector; a limitation on powers.

It is wierd that it is now often used by some – such as Neil Cavuto – to justify further encroachments of the state into private life.

What a brilliant man. Who would have thought that with all of the muck of our time, one of the greatest Senators ever would come from it…

There are the right.
There are the strong.
And once in a great throng,
the good: both right and strong.

Maybe in four years the country will be ready for this man. I will write in his name this Nov 4 to further insure that the MSM cannot ignore him.

Ron Paul understands economics; almost everyone else in Washington is clueless, corrupt, or both, IMO.