The Financial Crisis and the Free Market Cure

Well worth watching--

Book Discussion on [The Financial Crisis and the Free Market Cure] - C-SPAN Video Library: "John Allison talked about his book, The Financial Crisis and the Free Market Cure: Why Pure Capitalism is the World Economy’s Only Hope, in which he argues that government incentives and regulation caused the 2008 collapse and says that to improve the economy we need to adopt pure free market policies. He responded to questions from the audience at the Heritage Foundation in Washington, DC."

Some of the points made--

Housing is consumption not investment;

Wall Street wasn't the problem--government was (Federal Reserve, SEC and regulatory agencies, Fannie Mae and Freddie Mac, governmental policies, etc.);

Fannie and Freddie failed and were leveraged 1000 to 1, half their loans in sub-prime loans.

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