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2005 Ron Paul Chapter 110

Not linked on Ron Paul’s Congressional website.

Congressional Record [.PDF]

Amendment No. 6 Offered By Mr. Paul — Part 2
26 October 2005

2005 Ron Paul 110:1
Mr. PAUL. Mr. Chairman, I yield myself such time as I may consume.

2005 Ron Paul 110:2
If we had a bill that was a little cleaner, we probably would be dealing with the problems we face with the GSEs and we would be dealing with a housing program, a new housing program, probably with a different bill.

2005 Ron Paul 110:3
I see one attempt is to deal with this problem that we face. Another attempt is we are deciding that we need more money directed into the housing industry, and of course your building friends like this, too. And those are Republican allies as well. The builders love this because we will pump more money into the market so they can make more profits. So it is another government housing project. From a market viewpoint, this is not good because we want the money in the market to be allocated purely by the market and not by government direction.

2005 Ron Paul 110:4
It is the government direction first from the inflation, the artificial interest rates, and then from the allocation of funds that cause distortion. That is what we are dealing with here, the distortion that people are literally frightened about because nobody can even measure the amount of derivatives that are involved with Fannie Mae and Freddie Mac. People are holding their breath for an accident to happen.

2005 Ron Paul 110:5
I see this as an opportunity to talk about the marketplace, why we should move Fannie Mae and Freddie Mac into the market.

2005 Ron Paul 110:6
A lot of people complained about the problems we had with Enron, and we needed that as an excuse to pass a lot more regulation. The truth is the market dealt with Enron. Enron was dealt with rather cruelly by the marketplace before the regulators got there. What we need to do is not, and especially as Republicans and conservatives, talk about a world-class regulator and that it is going to solve all of these problems.

2005 Ron Paul 110:7
My argument is if we do not solve the problem of basic underlying inflation distortion of interest rates, allocation of funds through housing programs, as well as this line of credit, believe me, we are not going to solve this problem. Please vote to strike this line of credit to the Treasury.

2005 Ron Paul 110:8
As it was stated earlier on this floor, we may have some regulations built into this that may even precipitate the puncturing of the housing bubble. That nobody can predict. But without addressing the basic flaw in the system that has created this $5 trillion worth of debt, believe me, we will not have an answer. I urge a “yes” vote on this amendment. The Acting CHAIRMAN (Mr. BISHOP of Utah). The time of the gentleman from Texas has expired. Mr. FRANK of Massachusetts. Mr. Chairman, I yield myself 30 seconds. The gentleman’s amendment actually does not go quite far enough, but he has a germaneness problem. What he really wants to do is abolish HUD, given his philosophy. He does not think there should be a Federal housing program. Since he cannot get at HUD, he goes after Fannie and Freddie in ways that would reduce substantially what we do in housing. And, by the way, the administration’s objection to this bill is not, as says the gentleman, that it is too much regulation. It is that we do not give the regulator enough powers. So the administration’s position is somewhat opposite to the gentleman from Texas’, not for the first time, to his credit. Mr. Chairman, I yield 11/2 minutes to the gentlewoman from Florida (Ms. WASSERMAN SCHULTZ).

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