Now Playing at John B. Taylor on How Government Interventions Caused, Prolonged, and Worsened the Financial Crisis


John B. Taylor, professor of economics at Stanford University, challenges the conventional wisdom that it was an excess of deregulation that precipitated our current financial crisis. In fact, he says, the exact opposite is true.

In January, he sat down with's Michael C. Moynihan to discuss his new book Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis (Hoover Press) and explain what caused the collapse of the American economy. 


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  1. BRUSSELS (AP) – The European Union slapped import fees on U.S. biodiesel Thursday, saying it had to protect European producers from unfair American subsidies and below-cost selling.

    The EU fees will affect biodiesel sold by Archer Daniels Midland Co., Cargill Inc. and several others to Europe, the world’s biggest user and producer of crop-based fuels.

  2. Raivo Pommer

    Schwacher Dollar-Bank Fed

    Der Dollar ist unsere W?hrung und euer Problem,” nach diesem altbekannten Motto versuchen sich die Vereinigten Staaten wieder einmal aus der selbst verursachten Wirtschafts- und Finanzkrise zu mogeln.

    Die Ank?ndigung der amerikanischen Notenbank Fed am Mittwochabend, Staatsanleihen ?ber 300 Milliarden Dollar sowie hypothekenbesicherte Wertpapiere ?ber 750 Milliarden Dollar zu kaufen, hat die Kurse f?r Staatsanleihen deutlich steigen lassen, dagegen den Dollar stark fallen lassen.

    Dollar wertet in wenigen Tagen mehr als f?nf Prozent ab

    Waren am Mittwochmorgen noch 1,2987 Dollar n?tig gewesen, um einen Einheit der europ?ischen Einheitsw?hrung Euro erwerben zu k?nnen, so waren am Freitag bis zu 1,3738 Dollar n?tig. Das entspricht einer Abwertung von rund 5,5 Prozent in gerade einmal zwei Tagen.

  3. There is a one hour talk from John Taylor about this topic online:

    Very interesting.

  4. Mr. Taylor is correct that the Fed’s artifically low interest rate helped to artifically stimulate the housing market which unltimately led to the bubble and subsequent crash in the housing market and the downturn in the overall economy.

    What Mr. Taylor doesn’t mention is that last fall the economic news in the MSM was extemely negative even before the liquidity crisis.

    One can make a good case that Obama became POTUS due to the bad economic situation at the time of the election.

    The MSM has fawned for Obama ever since he declared for the Presidency.

    There are some authoritative opinions including that of James W. Paulson PhD. and Chief Investment Analyst with Wells Capital Managment, (Wells Fargo Bank) which I agree with that say that the financial crisis and housing crisis were greatly excerabated by the tremendous amount of panic put into those markets by the MSM daily news last fall in an attempt to get Obama elected which he was.

    Most likely the recession would have been very mild at this time if the MSM had not sent such a scare into the market place in their attempt to help crash the economy so that Obama would get elected.

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