Ron Paul was quoted and immediately laughed at when he said our economy is in a bad shape and will get worse before it gets better. He was talking about the debt minded spending and poor monetary policy of the United States and the citizens there of.
He mentioned that we failed to learn the lessons of the past of risky spending, risky lending, and dept spending. Nay only 18 years ago did we face a similar situation when the real estate industry had over spent their supply capital and met diminished demand. Banks buckled because they lent money to capitalist that talked a good game but didn’t have the market to back their pitch. Rather than listen to their senses, the banks listened to sales pitches.
The capitalist got what they deserved. They failed to analyze the market correctly and they lost…….but rather than allow the FREE MARKET system to work, i.e. purging the inefficient capitalist from the market. The US government established aid from the treasury.
Now 18 years later here we are again. People who should NOT have been loaned money to buy a house, got exactly that. Banks that should have NOT lent sub-prime to people at EXREME risk, did. When the first little tiny itty bitty tencie wencie hic up in the economy happened (gasoline prices) those people at risk fell, the banks got soaked…….and then again we [THE GOVERNMENT] came in and saved the day.
In the word of substance addiction that called BEING THE ENABLER
Of course what could you expect? People are increasingly converting to the “entitlement” mentality. It’s the same thing that happened to the Greek Republic and to the Roman Republic. It comes in cycles. Death of a Republic comes not from out side the walls…….but from within.
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Oh, that was an awesome clip. How did you come across this little gem?