Originally Posted by host

samcol, the largest asset of the households in the US, far and away, is the equity hled in the homes that they live in. The equity held is the difference between what the homeowner or mortgagee, would net after a sale, and after proceeds of the sale first pay off all liens on the property and sales and closing expenses.

My understanding of what you and candidate Paul are advocating, is a "reform" which would eliminate fractional reserve banking. Mortgage loans approved to prospective home buyers would come from cash reserves of lenders, in the case of lending banks. from a portion of deposits not reserved to protect a bank from a sudden "run" on it's deposits, a series of numerous, unforseen withdrawals by depositors.

Since real estate values correlate directly to liquidity, the ease and availability of mortgage loans, how would ending of fractional reserve banking, even if it was a gradual...say five year process, preserve liquidity, especially since Americans support a negaitve savings rate? Wouldn't it be more likely that ending fractional reserve banking, in addition to pressures from mortgage loan resets and falling housing prices already in progress, would accelerate foreclosures and transfer an impressively large portion of housing assets from current householder/mortgagees....to wealthy investors?

Paul's intent is to reverse the quantity money supply. If that is done or even aniticpated, all assets will be worth less. Less government regulation will leave everyone to build on what they already have, or don't have. It offers an enormous headstart for the wealthiest and most connected, to take what is left in the hands of the less wealthy, 90 percent.

Call the "Paul movement", what is. It's a group of people in good health with good future income prospects who do not want to pay taxes.

Be careful crossing the street, avoid touching your face with your fingers, wash your hands often, avoid crowds and people who sneeze without covering their mouths. If you succeed in electing Ron Paul, you're going to have to stay healthy to earn and keep all that money!