"If we look only at the stock market, then we're in denial," warns Ron Paul in this brief 'uncomfortable-for-the-anchor' CNBC interview, adding that "it's an illusion." While the stock market has performed well, Paul explains that the economy-at-large continues to struggle noting that it's due to the Fed: "I don't think any one individual knows how to plan the economy by manipulating interest rates' [they] are so important that if you give this power to one small group - there will be distortion." That's why socialism fails, slams the Fed critic, "it's the invisible hand that we lack, not the wisdom of a few people. Few people can't be wise enough to dictate the market," and the Fed's history shows their track "record is pretty bad."
"So sometimes you have housing bubbles and sometimes you have housing busts, then you have housing bubbles and bond bubbles that's all [the] result of the manipulation of interest rates, which is my real objection to it."
"So one half of our economy is socialized, because it's the control of the money supply, the control of the interest rates,"
"We don't believe they're capable of doing it and I think history shows that the record is pretty bad."
"The economy on the surface looks good, but if you look at hardcore unemployment and standard of living of the middle class, there's still a lot of problems out there... So if we look only at the stock market, then we're in denial."
Furthermore, Ron Paul went to note that "low interest rates are not a panacea - though they won't admit this," adding that the reason for a lack of recovery and hiring is all aboyt "confidence" and that can't be manufactured by stock markets... "we are bankrupt and have been encouraged to take on more debt" - simply put, he adds "the financial system is deeply flawed"...