Tuesday, August 26, 2008

The Fannie-Freddie Fraud by Ron Paul

Ron Paul statement before the US House of Representatives on HR 3221 July 24, 2008, on the proposed Fannie Mae and Freddie Mac bailout.

Unfortunately, but not surprisingly, instead of ending the prior interventions in the housing market that are responsible for the current crisis, Congress is increasing the level of government intervention in the housing market. This is the equivalent of giving a drug addict another fix, which will only make the necessary withdrawal more painful.

The provision giving the Treasury Secretary a blank check to purchase Fannie and Freddie stock not only makes the implicit government guarantee of Fannie and Freddie explicit, it represents another unconstitutional delegation of Congress’ Constitutional authority to control the allocation of taxpayer dollars.

The Fannie-Freddie Fraud by Ron Paul

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