Saturday, September 20, 2008

This Bailout Won't Be the Last

Ron Paul: This Bailout Won't Be the Last
by Luke Mullins

I recently chatted with Rep. Ron Paul (R-Texas) about the gigantic financial bailout that the government is preparing to undertake.

Some excerpts from the interview:

What's your take on this huge financial bailout?
It's more of the same. More debt and more inflation and more pressure on the dollar. Ultimately, although the markets are responding very favorably at the moment, I think it is going to be devastating to the dollar and to our financial situation in this country.

... If this process continues, we're going to own General Motors and Ford, then we will have to own the airlines. We are socializing our country without even a vote by the Congress. ...

Will this bailout stabilize the crisis?
I personally don't think so. It might be temporary, but no, there is much more involved. I mean, we are talking about trying to unwind trillions of dollars of derivatives . . . You have to get rid of all that stuff.

Will this bailout be the last?
No, no. This won't be the last one. There will be something else later on. But that doesn't mean you might not have a few months of a reprieve. But it will continue.

Ron Paul warns of fall of dollar

GOP congressman Ron Paul says the radical bailout of the troubled US financial market will only lead to the destruction of the dollar.

The Bush administration is asking Congress to authorize the government to buy $700 billion in troubled mortgages, a costly plan to bail out Wall Street's beleaguered financial institutions.

Congressman Paul does not approve of the plan and says it will fail to produce a practical outcome.