Hundreds PhD Fed Economists got it wrong. How did Ron Paul get it right?

1/13/2012 Larry Kudlow asked Dr. Ron Paul how he was able to accurately
predict the housing and financial meltdown when the records show that
Bernanke and all the other Fed economists completely missed it. Paul's
explaination is that they follow the wrong system of economics
(Keynesian being wrong, Austrian being right) and since the university
system favors Keynesians, economic professors will adhere to a system
that tells people what they want to hear. Austiran economists, on the
other hand, look at reality and tell it like it is

Category:

News & Politics

Tags:

• financial
• Paul
• republican
• Housing
• Premiere_Elements_7
• Romney
• libertarian
• meltdown
• Kudlow
• bubble
• fed
• 2012
• Bernanke
• Ron

[gorglun]

Mr. Ron Paul is correct. The Austrian School economists foresaw the crisis ahead of time. Too bad the keynsians are still in control of the universities. The Austrians will continue to be marginalized.

[Ultima008]

Central Banks like the Fed are not perfect. They certainly produce some negative side effects. But the good (control of money, ideal inflation lvls -> investment, combat deflation, etc) far outweighs the bad. Historically, before the Fed, recessions were more common and much worse. Regarding the Great Depression, it was as bad cause the Fed did NOT do its job. Rather than expand the money supply, they allowed it to shrink, leading to a deflationary spiral, making the depression as bad as it was.

[Ultima008]

o Ron Paul. Yep, you were right there was a housing bubble. And yes it was partially fueled by the Fed keeping rates too low for too long after 9/11 recession. But many economists guessed there was a bubble as well. However, it was impossible to tell how much damage would occur when it eventually burst. They did not know how flooded the financial markets were with MBS. Nor could they have foreseen fraudulent CDSs (insurance on MBS) from places like AIG.

[KhmerD0g]

Economic is based on past experiences and not some theory that u learn in Harvard or Princeton.

[fargley001]

Ron Paul is for sound economic policy, to grow the economy, and make better lives for the American People.

Those so called "PHD's" in the fed are there to serve corporate/government interests at the expense of currency holders.

I dont think those people at the long table would consider themselves failures. They were successful in accomplishing what they intended to do.

[SPFrobber]

ron paul rulz....