Inflation and the subsequent collapse of the residential property market was facilitated by the Federal Reserve for nearly a decade. Since late 1990, when the technology bubble burst until early 2007 when investors began to realize how much bad debt had actually been created in the housing market, rates interest were kept artificially low, while capital poured into suburban expansion and subprime mortgages.

The leader of the Fed and the manipulator in chief of the economy during the primary boom years was Alan Greenspan, who believed in such things as the gold standard, the inability to sustain a housing bubble, and speaking before Congress in riddles and financial jargon. His main opponent in Congress was Ron Paul, who still believes in such things as the pattern gold, inability to sustain any manufacturing market bubble, and is a major puzzle solver himself with a solid Austrian economy.

One of the great mysteries of Greenspan's legacy has been rumored for his doctoral dissertation at New York University, compiled and written in 1977. Certain parts of the 180-revealing the page thesis have been reported by the news organization Barron's. The parties examined by Jim McTague at Barron's fair that Greenspan probably understood and could have predicted all the events he was putting in place by inflating a bubble of mass housing.

A more intriguing article cites shows how the master manipulator who knew what would happen when the dotcom bubble burst and all that capital needed a new home in residential housing. "Greenspan also pioneered the introduction of his thesis, in which he noted that homeowners were refinancing for larger amounts than their original mortgage, in essence monetizing increases in market value of your home and spend excess cash on goods and services or entry into savings. "This was long before double-digit increasing home values, subprime, no doc loans, Home Equity Lines of Credit (HELOCs), and inflatable mcmansion-value suburbs, but is a representation perfect for what happened during the housing boom of late 1990 and early 2000's.

Ron Paul, too, understand the consequences of the bubble housing. In a speech in the Congressional Record on September 6, 2001, said, "especially refinancing helped consumers keep spending even in a slowing economy. "Monetization of the same values of increase in property that Greenspan became concerned about the Greenspan's when looking for a new bubble.

Neither Paul nor Greenspan believes that a continuous cycle of rising home prices and refinancing could continue, however. As Greenspan himself claimed in his doctoral thesis, "There is no perpetual motion machine which generates a constant process of increasing house prices. "Paul, in the same entry in the Congressional Record As mentioned above, agreed:" This too will burst as all bubbles to do. "And the more inflated the bubble, and more capital was misdirected it, the greater the fall.

Who, however, could have forecast a big drop in the housing market, with falling property values lower than the replacement costs of buildings? Well, Greenspan, for example. A "price of existing homes would drop the prices of new homes for the level of construction costs or below, causing a strong contraction in construction, "he wrote in the thesis that earned him a deserved Ph.D; deserved because of his uncanny ability to predict the consequences of policies being put in place and waive liability for later.

Paul also knew that bad investment caused by intervention Government at any sector of the economy lead to disaster. Make a statement before the House Financial Services Committee of the House of Representatives in September , 2007, Pablo said: "The housing boom was caused by Federal Reserve policy, resulting in artificially low interest rates. consumers are misled by low interest rates, were looking to consume, while the builders were the low interest rates as a signal to build, and build they did. "The bigger the bubble, there would be more bad investment, and the more severe the correction would be.

Most Joking aside, the example Alan Greenspan as Federal Reserve chairman should serve as a strong warning against putting anyone in power who believes that understanding how the economy works. Greenspan understand and believe in the libertarian ideas of economic manipulation and economy of Austria, and then spent nearly two decades at the Fed working against each these principles.

Not so much that he turned or revoked at what he believed to be the most successful bubble-inflator in history – much worse than that used its knowledge of how a free market can work to promote the cause of socialism. In fact, probably would have been much less destructive have someone in charge of the Federal Reserve, which certainly had no understanding of how markets work at all, instead of someone who understands the free market and prosperity that will help produce, but psychopathically worked in the opposite direction.

Ron Paul, on the other hand, stuck to his principles and had the audacity to challenge supposed libertarian and Austrian economics defending Greenspan. For this and his continuing adherence to traditional American beliefs of individual liberty and free trade, and opposition to government manipulation and corporate welfare, which has been marginalized by the mainstream media and his colleagues in Washington.

Use the economy as a laboratory for how to make a firm understanding of the economy on its head and promote socialism and corporatism, mad scientist Greenspan has further impoverished again all to come in and run the economy of the hallowed halls of the financial elite. Paul, in defending the true freedom and less government, was rejected by the government, media companies and mass brainwashing, but his ideas and influence are being embraced by a growing group of people who wake up the evils of government manipulation and psychopathy of power.

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