Paul: Bailouts will lead to more turmoil

WASHINGTON, Sept. 23 (UPI) -- Rep. Ron Paul, R-Texas, says the U.S. government's bailout of financial institutions will increase economic instability in the long run.

Paul, who ran for his party's nomination for president this year, said such excessive intervention keeps the market from adjusting prices to lower levels, which would bring the economy back into balance, equalizing supply and demand, CNN reported Tuesday.

Paul, who serves on the House Financial Committee, told CNN policy makers have not learned prices must adjust to economic reality.

While the "government cannot just sit back idly and let the bust occur," Paul said, "it must actively roll back stifling laws and regulations that allowed the boom to form in the first place."