Ron Paul saw it coming!

Ron Paul saw it coming over six years ago. This is what he told Congress. You wonder what red meat they've been eating. Ostrich by any chance?

He told them that if Fannie Mae and Freddie Mac were not underwritten by the federal government investors would demand the institutions held to higher management and accounting practices.

"Ironically, by transferring the risk of a widespread mortgage default, the government increases the likelihood of a painful crash in the housing market," Paul predicted. "This is because the special privileges granted to Fannie and Freddie have distorted the housing market by allowing them to attract capital they could not attract under pure market conditions. As a result, capital is diverted from its most productive use into housing. This reduces the efficacy of the entire market and thus reduces the standard of living of all Americans."

THAT WAS FIVE YEARS AGO! Deaf buggers, aren't they?

Posted in: credit crunch,Fanny Mae,Freddie Mac,Ron Paul