"Banks took the risks and made money during the bubble years; those who exercised bad judgment must now accept the consequences of their actions."
Paul said a basic rule of economics is that the supply of goods will equal demand of goods as long as markets are permitted to operate. But he said government intervention skewed that rule in the United States and unwinding the government's role will involve necessary pain.
"[O]nly by allowing the housing market to clear can we hope to rebuild our shattered economy from a stable foundation," he said. "Clearly there will be pain in the short term, but we owe it to younger Americans and future generations to allow the reemergence of a rational housing market."