Skip to comments.Palin, Sounding Like Ron Paul, Takes on the Fed
Posted on 09/23/2009 7:07:47 AM PDT by Palin Republic
Former Alaska Gov. Sarah Palin fired a shot at the Federal Reserve in her coming-out speech in Hong Kong today, blaming the central bank for the current crisis and disagreeing with the idea that the Fed should have a greater role in preventing the next crisis. It was an echo of fellow Republican and Texas congressman Ron Paul, who has led the charge in Congress to perform an audit of the Federal Reserve with an eye to eventually eliminating it.
How can we discuss reform without addressing the government policies at the root of the problems? The root of the collapse? And how can we think that setting up the Fed as the monitor of systemic risk in the financial sector will result in meaningful reform? she said. The words fox and henhouse come to mind. The Feds decisions helped create the bubble. Look at the root cause of most asset bubbles, and youll see the Fed somewhere in the background.
More generally, Mrs. Palin took the tack that the financial crisis occurred because government got in the way of free enterprise.
Lack of government wasnt the problem, government policies were the problem. The marketplace didnt fail. It became exactly as common sense would expect it to, she said. The government ordered the loosening of lending standards. The Federal Reserve kept interest rates low. The government forced lending institutions to give loans to people who as I say, couldnt afford them. Speculators spotted new investment vehicles, jumped on board and rating agencies underestimated risks. So many to be blamed on so many different levels, but the fact remains that these people were responding to a market solution created by government policies that ran contrary to common sense, she said.
(Excerpt) Read more at blogs.wsj.com ...
Well we can welcome the change, but her sincerity on this issue is subject to some skepticism. During the campaign she blamed the crisis on “predatory lenders”.
Welcome to FR!!!!! Great post! Thanx!
Nice tagline...mind if I borrow it??
Ron Paul is right about the Fed.
LOL! I liked it too. Pail and Bachmann have more sense then most of the GOP. Paul is right about the Fed.
Helicopter Ben did what he had to to overt the crisis. Greenspan left town in the nick of time. He left an absolute disaster behind. Palin is right, there is a lot of blame to go around, and a good chunk of that lies with government and fed policies. But Helicopter Ben’s aggressive actions save us from a free fall.
Trust me. She has decided to run against the entire political class, including the Obamists and that Ass Clown G.O.P..
I can't say this too many times.....
“So many to be blamed on so many different levels, but the fact remains that these people were responding to a market solution created by government policies that ran contrary to common sense, she said.”
She GETS it.
Not entirely correct. Ratings agencies deliberately understated risks to keep clients happy.
There was much more than government involved with the financial meltdown.
I think that Palin and other conservatives are suspicious of a permanent role for the Fed in “supervising” the economy. We’ve had the Auto Bailout, cash for clunkers, and Porkulus.
What’s next? Strength through Joy?
Her solution of elimation of Cap Gains and the Estate Tax alone would supercharge the economy.
Towning the McCain line, possibly?
All he has done is prolong the crisis. If he hadn't intervened we'd be in recovery by now.
Yay! I got my screen saver back! Thanks!!
I’m thrilled about every account of what she said in her speech. It only ended about 8 hours ago, was closed to the press, and already the WSJ has three articles on it.
I don’t think she has to go as far as to call for the end of the Fed—just point out its clear role in the crisis and shame the rest of us into not letting Obama get away with centralizing all financial regulation under it.
Probably a fair amount of predatory borrowers, also.
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