Ron Paul to Paul Volcker: Let The Market Regulate Itself!

[bonfirejovi]

Is that guy on the left Paul ok?

[RusselBertrand]

Ron Paul is a jackass....he asks questions then pretends to ans. r them himself, so as know one can comment on how incorrect his version of the facts are! he says he beleives in regulation, as in the free market regulates its self!! which makes about as much sense as a libertarian being in congress, or a free market idealouge as a regulator) sadly this is not far from reality...IN SHORT GO LIVE IN THE FUCKING MOUNTAINS !!!

[xMaXiMuSx]

@RusselBertrand

You don't know what you are talknig about.. The market SHOULD regulate itself.. It shouldn't be manipulated by bankers to their own benefit.

[bonfirejovi]

@RusselBertrand Milton Friedman believed what he believed and is the most respected economist since Keynes and has a Nobel Prize under his belt. What have you done with your life? Friedman demonstrated that the invisible hand is alive and well and if allowed to function the market has the checks and balances of profit AND loss to regulate itself with exceptions to externalities. In short you are an idiot and have obviously never bothered to understand opposing arguments.

[rexdeodium]

The only time we need regulation that works in one direction, is when we already got regulations that work in the opposite direction, according to mr. Wolker here. I'm a bit skeptical - as a child, I was always told that two wrongs does not make one right...

[wayne99fan]

@TLPEvIL pretty bold statements. Can you back them up at all? I'd like to know where you found the permission for the fed too....

[shakaama]

@TLPEvIL please give us the place in the constitution that gives congress the power to create the fed; the ability of a non-gse to create money, devalue money, or destroy assets without due process of law; the ability of congress to create legislation that can target one sector of the population to redistribute wealth?

You won't find it. The constitution says the exact opposite in very specific language. The supreme court has been asleep for 80 years now.

[meteorpinball72]

Ron Paul is an idiot.

[bonfirejovi]

@meteorpinball72 Good argument... did you predict the housing bubble?

[enduro0276]

Banks should be forced to stand on their own reserves. We do not need the fed. to bail them out, creating money out of thin air and robbing the value of my hard dollar.

END THE FED.

Their is no call for it in the constitution and further more the paper dollars they create are unconstitutional.

[believersunderground]

the world bank runs the show. Scott (BUG)

[DrWillyWildcat]

☻/

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this is Ron Paul copy and paste Ron Paul and he will soon take over youtube ...

[viehe1969]

I'm glad you guys shut mr coldplay up. Maybe he got arrested for not wearing his seat belt or not wearing his helmet. He seems to be one of these people who likes to be micro-managed. I, myself, like freedom and personal liberty...

[libertyeconomics]

Paul Volcker is a big advocate of "regulations." There is no way the government can regulate away insolvency. Furthermore, when you have so much inefficiency and corruption, that is a good reason to DEREGULATE, so that there will be FREE ENTRY into the marketplace, so that the efficient and solvent can take the market share away from the inefficient and insolvent. Let somebody start a bank running 100% reserves and using REAL MONEY, i.e., gold or silver. Ah, but legal tender laws.

[RepublicanPower]

This video is a perfect example of why Ron Paul is an idiot. How dare he masquerade as a Republican and disgrace the almighty GOP! Senator Paul is a dirty Democrat and we all know it.

[drudge20]

Yes,an George W Bush is a genius. The people who follow Ron Paul are to educated to believe your BS. This a Paul

clip. Take your Republican head an shove it up Dick Cheney ASS.

[RepublicanPower]

I was never stating nor implying that Bush was a genius you ignorant stereotyping moron. The dozens of morons who follow Ron Paul are the exact opposite of "educated" and sit around watching pseudo-intellectual and non-credible independent "conspiracy theory" documentaries like Zeitgeist all day. The people who DON'T sit on their fat uneducated ass behind the internet all day obviously know much better. I don't support Cheney either.

God bless Ronald Reagan.

[drudge20]

While Reagon slept Bush ran the White House. As long as the Federal Reserve Bank is not audited. Free to print money for its owners big bank, Control of the Gov,Media,all corporations. Our gov will be corupt. We Ron Paul believers are fully capeable of critical thinking. We don't blindly stick our thumbs up our ass and wave the flag. We want the Republic back.

[wayne99fan]

@RepublicanPower you must not have a clue about all the people you just slandered. Such generalized statements show a lack of intelligence, for surely you wouldn't want us to start making statements assuming everything about you because you are a republican right?

[littlebier8]

Volcker is part of dying breed of conservatives who think they can still maintain this absurd balancing act between freedom and the state. The reason why he did well as Fed chairman is because he was much better than his predecessors, but he also still believes that the Fed is legal and necessary, which is where he goes very wrong.

[dolfan2909]

what volcker's basically saying is we need regulations b/c of the fed...when he said you might not need those regulations under other market conditions he stuttered b/c he knew those "other market conditions"=a commodity backed currency...volcker knows his stuff he just can't come out and say it

[Civsuccess2]

True free market is people who buy fraud product cannot get a bailout.  People who provide fraud product should go bankrupt.

If nobody want to invest in US, government should not interfere.

[kermitcintronsucks]

You argue with the austrians dick, you fail! You fail dick.

[grubernick]

i tend to agree..

...we still got pretty stubborn folk back home in Vienna :)

[BoogerReyProductions]

I have no idea wth this guy has said.

[VivaMydick]

I suggest go back to school and study math really well this time

Gold should have been adjusted for inflation about $5000 but it is not $5000 but $750 :) So it really losing value not gaining it

It is amusing how they let idiots like that to vote

[PreservingLiberty]

If you research Austrian econ. enough you will find your answers. Ron Paul did and that's why he WAS proven right by the market.

[VivaMydick]

gold was $2500 ? when ? it was 1026 at it's highest

[davidtulsa1982]

$2500/oz inflation-adjusted, that figure is accurate.

[VivaMydick]

adjusted for inflation ? Your math is just as good as Wall street :) Gold was 850 in 1980 when purchasing power of dollar was 4-6 times higher than today's dollar So today's dollar is like 15-25 % of 1980 dollar . Gold highest was about $1000 .Taking strength of 1980 dollar into account

today's gold price of $750 adjusted for inflation is only is about $100 :)

[VivaMydick]

So if you invested in gold in 1980 and kept it till now your purchasing power would have fallen about 8 times . Gold is a horrible investment .This is why they only recommend to hold about 5 % gold out of your total net worth as a hedge .

[VivaMydick]

it is not in best interest of United States at the moment to abolish federal reserve you crazy nuts

[megamania77]

You may not know the SEC in 1975 set up the credit rating cartel by mandating debt be rated by a Nationally Recognized Statistical Rating Organization (NRSRO). The SEC identified 7 firms to do this.

Previously debt buyers would go to the ratings companies to know what they were buying. In the model, issuers of debt had to pay to get it rated or they couldn't sell it. Of course this led to shopping around to see who would give the debt the highest rating.

Kudos to Mike Shedlock for this info.

[xaviqaz]

Paul is not an anarchist, sir

[PreservingLiberty]

the markets keep proving him right time and time again, but the media is still able to marginalize him, is this by the people, for the people?

[bigollameo]

Excuse me, but exactly WHEN did the markets prove Ron Paul's economic theories right? Sure, he argued against military expansionism, fiscal overspending and monetary overextension... But proven right when he's advocating for complete government noninterference with a global market whose credit spreads are showing that banks won't lend to each other? Proven right when he's advocating nonintervention with markets that aren't restarting themselves?

He's an honest guy, sure, but right...I dunno.

[PreservingLiberty]

You can't treat symptoms without solving the problem and pretend there will be no unintended consequences. Government intervention in the housing markets has only perpetuated the bubble which caused the liquidity crisis in the financial sector. The credit freeze is just another symptom of bad monetary policy enacted by the FED.I could go into a lesson on money and banking but I don't have the time.

[sirellyn]

Markets have to restart themselves. This is grade 8 economics. Supply and demand. If a big company / bank / car manufacturer goes under there will be immediate need for someone else to perform that job. Unless theres barriers for others to do it (usually government regulation.) Someone will step in. If they do a crappy job, people will go elsewhere.

You used to be able to "vote" with your money. Now you appoint a "package deal" president, and if you don't like some of what he does, tough.

[sirellyn]

Didn't you also notice it was only the insolvent banks who were bailed out that won't lend to each other? Of course they won't! If they failed and someone decent took up the reigns there will be reason to TRUST the other banks with the money. But now there's just a ton of incompetent businesses being mismanaged and they can't fail. It's absolutely Dilbert. If you are super crappy at your job you'll be promoted.

[Clyaton]

Well for one he's affiliated with Peter Schiff right? Economic advisor who predicted in 2002 our current recession and again in 2006.. Even saying 2007 or 2008 cuz he wasn't really even sure... And the other guy laughed at him and called him silly basically! Oh and that's just an example from YOUTUBE.. care to rebuttal?

[Clyaton]

yep

[yakyakyak69]

How to Abolish the Federal Reserve

Google: American Monetary Reform Act.

1) Pay off the Federal Debt & interest bearing Federal Reserve Notes with Interest Free United States Notes & save over $50 Bil./yr. in interest to the Fed.

2) Abolish Fractional Reserve Banking and increase reserves as United States Notes replace Federal Reserve Notes.

3) Repeal the Federal Reserve Act of 1913 and National Banking Act of 1864.

4) Withdraw the U.S. from the IMF, the BIS and the World Bank.

[daniel987878]

If we can educate enough people we can get rid of the FRB on our terms. We wont have to follow any process. They cant dictate to us. Freedom.

[asierra1492]

Funny he didnt address the Fed bubble creation machine, which was ron pauls main point. Instead he ONLY talked about the moral risk of backing financials.

[uhaegde]

we the people must create our own means of trading and exchange and thereby keep the FED out of the loop. This means that we the people must create our own agreed upon currency, wheather it be gold or silver pieces. That way, if done quickly enough -- We the people will not get SCREWED OVER. Only those holding dollars will.

[uhaegde]

HA HA who got blocked???

[moneymagnetelizabeth]

Ron Paul you are a gem. They are all artificial people, and with that comes no values throughout. They must be held accountable for this ponzi scam.

[dan020350]

how can credit cards exists if there is no gold backed?

[lastnymleft]

Next time Bernanke's feet are being held to the fire by Dr Paul, he should try Volcker's trick: mumbling. I found it hard to fault his answers, because it was so hard to understand him.

[libertyeconomics]

Yes. It looked like a non-answer answer to me. Just a bunch of platitudinous hogwash, with no explicit definitions. "You need a balance."

[wakedawg30]

Volcker seems to think investors are stupid. What he fails to realize is that the market will punish - and thus discourage - malinvestment on its own.

His so called "needed" regulation doesn't allow the markets to appropriately and proportionally discourage and punish dumb bahavior like this.

At least he hasn't been knighted like Sir Alan "Bubbles" Greenspan....

[jwilson770]

That convulsing spook is behind Paul again.

[coldplay8818]

Saying no regulation, is like saying, "Hey lets not have gun laws and let anyone run around the streets with weapons all day long. We'll do something about it when anyone gets shot." It's absurd.

if you dont understand the specifics of what happened in these securities than shut up about ron paul. it's really ridiculous. regulation gave this country seat belt laws, speed limits and lots of other useful rules. it is needed more than you all realize.

[davyjames]

bzzzzzzz. people can own handguns in a majority of US states and those are not the US states where the most gun crime is... hmmm...?

seat belt laws = nanny goverment

[coldplay8818]

if you dont think there should be standards in medical care, financial services, and technical areas that the average public person cannot understand, you are a fool.

[Green7Hornet]

I've heard OTC derivatives market is around $750T.

Seems nobody is doing the job of ensuring financial stability. The fed didn't halt, but encouraged, proliferation of what buffet called financial wmd.

The banking sector despises stability, and does wild speculation, even global fraud.

Seems the system is designed to spread fraudulent financial instruments globally. this "spreading risk" is a massive rip off. something important is broken somewhere.

i wonder how this plays out

[stealthswimmer]

lol...coldplay, I hope you realize the areas with the most restrictive gun laws are the ones with the highest gun related crime-rates.

There is no logical reason for restrictive gun laws if you have any sort of compassion for law-abiding citizens.

[coldplay8818]

US has far and away the highest murder rate in the industrialized world. there is no escaping the facts. if guns were completely illegal in the US, it would revert to the norm over time.

[Champ1on]

canada has almost as many guns per person as the us, and murder is virtually non-existant.

in the us, murder rates are higher in the inner cities where gun regulations are stricter.

making guns illegal will not stop criminals carrying them.. it will just stop citizens carrying them for self defence.

[InTheSticks1881]

Volker and Paul essentially agree on all points discussed.

[coldplay8818]

all you anti-regulation people, don't know what kind of insane security structures are cooked up inside investment banks on wall st. I work for a bank, and the kind of structures that are created are complete nonsense and backed by rating agencies (Stamp of approval) that are worth less than the paper printed on. This fiscal morass dates back to the clinton era when glass/stegall was broken down.

[Green7Hornet]

this is not a nice question, but I am really interested in CDOs and all that, and the havoc it will cause, and I am really curious to know - are there any people in the industry who are ashamed of what banking has become, or what it is doing? any feelings of disgust? is there anyone at all in banking who feels a sense of responsibility, or a desire to be part of something constructive, instead of something destructive?

[coldplay8818]

sales are sales. if you are willing to buy something, why shouldn't they sell it to you? is McDonald's poisoning america with unhealthy food? should that be illegal too? Obviously not, but that's why there are SOME regulations... you have to draw a line somewhere.

[Green7Hornet]

But everyone understands McD is poor for health, while CDOs are made incomprehensible. Buffet said to understand one CDO2, you need to know 750,000 pages of documents.

(not to forget that buyers relied on rating agencies too)

The lesson seems to be - if someone else controls your money, whether it be a hedge fund, or mutual funds, or a pension, or a bank account, then you are going to lose it all;

And, you are going to told that it is your own fault for trusting, instead of verifying.

[coldplay8818]

some things are beyond the grasp of the average person and thats why there are licensed individuals which require regulations to govern them. doctors, financial professionals, etc.

[Green7Hornet]

yeah i think we agree, my problem with the financial sector is that nobody bothers enforcing any of the regulations.

[libertyeconomics]

You miss the point that all of the regulations and licensing in the world does nothing make the problem WORSE. When the entire problem is due to artificially low interest rates due to the central blank flooding the loan market with cheap money, it matters not how good the borrowers and lenders are. The free market wouldn't have made the problem possible to begin with.

[Edgrot]

This man is the only man for Pres of our nation in 2008....I hope we can get it together and get him there. Ron Paul just intel rapes all aposers . His record is so solid that the mud slingers have nothing to sling. So all they can do is attempt to ignore him and spin it in their favor.

[littlemisspissy]

I think it's great that Paul, not Obama, not Clinton, and not McCain goes toe to toe with Volker and Bernake and beat 'em up over their lack of fiscal responsibility. Paul has more brain cells than all of those three clowns put together.

The idea of having an idiot like Cinton or Obama or McCain in the White House makes me want to throw up in my mouth.

[RusselBertrand]

you make smart people smile becuase you are not so smart :)

[contain1359]

Regualtions placed on the "free market" is one of the main problems, another top two or three problem is the federal reserve. "Reserve" is a conflict of interest in the name it self. Get the excutive power and fereral reserve out of the American monitary system and the free market will take care of itself.

[TheEvilDetector]

The response by Volcker, dodged the point cleverly. Rather than removing the fed, he basically said keep the fed and increase regulation which implies fed is not to blame the people who take excessive risk are to blame.

Well moral hazard is the point here, the source of the moral hazard needs to be removed, not have a band-aid placed on it.

[TheEvilDetector]

America is going down the drain.

Here we have an honest, brilliant and respectful man running for president and he was discarded like a used diaper by the mass media.

Good Luck USA, you will need it.