Beginning with The China Spy Plane Incident, followed by September 11, 2001 and through his entire administration, including Katrina, this Executive Branch did nothing to prevent disaster. The current financial crisis is another example of "The Same Old Mistakes."
Is it such a surprise that Ron Paul realized the extreme circumstances facing the USA under this administration? No. You had to be profoundly out of touch with reality not to see this coming. No needed a crystal ball to predict what was to come for the financial markets. What does that say about Paulson as well?
Ron Paul saw this financial mess coming (click here)
It's not like there wasn't anybody who saw the economic woes of the week on the horizon.On Sept. 10, 2003, U.S. Rep. Ron Paul, R-Texas, testified before House Financial Services Committee, which was holding hearings regarding special privileges extended to government sponsored enterprises (GSEs). Think Fannie Mae and Freddie Mac. In his testimony. Paul criticized such privileges in general and warned of the potential for disaster posed by government involvement with Fannie and Freddie specifically. Paul noted that according to the Congressional Budget Office, housing related GSEs received $13.6 billion in indirect federal subsidies in fiscal 2000 and had a line of credit with the United States Treasury exceeding $2 billion. That line of credit Paul said was an explicit promise by the Treasury to bail out GSE's in times of economic difficulty. (Sound familiar?)
