Senator Rand Paul interviewed Treas Secy Turbo Tim Geithner (looking like his toupee was blowing back in the wind) Tuesday in a small business committee hearing.
Paul: What do you think caused the housing bubble from 2001-2007?
Turbo: Without being too technical about it, we had a long period of low rates, and we had a terrible erosion of lending standards, and those 2 things together caused a huge over-investment in housing.
Paul: I agree, who do you think in the country had more influence over rates than anybody else?
Can you think of a body...maybe in New York with a lot of bankers involved with it...maybe a central bank...called the New York Fed?
I want the market to determine what rates are!
The Soviet Union failed because they could not determine the price of bread. We are in a failure as a country now because we are trying to determine the price of money, and we shouldn't have individuals, central bankers determining the price of money because when they do they make mistakes!
Well played Mr. Paul, well played!
Watch the full squirm session below