Instapundit Talks with BB&T's John Allison About How the Gov't Caused the Financial Crisis

Glenn Reynolds talks with former BB&T CEO John Allison about how the government caused the housing and financial crises. When helming BB&T, Allison not only refused to underwrite projects based on eminent-domain abuse, he emerged as one of the outspoken critics of TARP and other bailout plans.

Must-watch, if only for Allison's explanation of why the financial sector is the "most-regulated" part of the U.S. economy - a basic point routinely dismissed or ignored by those calling for yet more regulations and bailouts.

About 11 minutes and well worth the time.

Comments

[Matrix]

So, when will the administration decide to investigate BB&T for any dirt they can find on them?

[Tim]

"Government: the cause of, and solution to, all of life's problems."

[Matrix]

Well, just the cause, but they'll tell you they have the solutions. Except their solutions just cause more problems.

[Tony]

Government can be blamed insofar as it had the wrong policy. What's the right policy? Further unfettering the hands of mortgage lenders and the financial sector? Because giving people more freedom means they police themselves more?

[Pip]

Do you own or have access to a gun? If not, I think we at Reason should hold a bake sale to raise money to buy you a gun. To use to commit suicide.

[sevo]

Nope. Too dangerous.
This imbecile would miss and hit an innocent person.
Hemlock.

[Matrix]

Nah. It would be easier to tell him to go to a tall building and jump off. Then reassure him that there is nothing to fear because the government will be sure to catch him.

[Contrarian P]

"What's the right policy?"

Stop attempting to influence consumer and business behavior. Punish force or fraud. That is all.

"Because giving people more freedom means they police themselves more?"

Once again, you betray your true ideas, Tony. People are do dumb to know what to do with freedom, therefore someone wiser and better must decide. The right people must be in charge, to protect the sheep from themselves. Your argument is rather contradictory anyway, as you argue that the solution to a problem that was aided and abetted, even actively encouraged, by the government is to have the government do more.

[Contrarian P]

Should be "too dumb". Damn.

[R C Dean]

Because giving people more freedom means they police themselves more?

Umm, yes. Yes, it does.

[Tony]

Those poor bankers, government forced them to make millions upon millions of dollars betting on derivatives.

No, the problem was government allowed it. Government's fault? Sure, if you like. But eventually we have to get beyond blame and look at what the correct policy is. Encouraging runaway capitalism seems to have failed in this instance.

[NAL]

They didn't force them to bet on derivatives, but they did provide a huge incentive to make bad loans. They knew Fannie and Freddie were going to buy up those loans, so it almost became a race to see who could make the worst loans fastest.

[Virginia]

Allison announced his retirement on 8/27/08. One month later he slammed TARP.

U.S. Treasury Secretary Henry Paulson's proposed $700 billion bank rescue aims to help "poorly run" companies and the primary beneficiaries would be Goldman Sachs and Morgan Stanley, said BB&T Corp. Chief Executive Officer John Allison in a critique of the plan.

Treasury "is totally dominated by Wall Street investment bankers" and "cannot be relied on to objectively assess" the impact of government policy on the financial industry, Allison wrote in a Sept. 23 letter to Congress.

I really like that dude.

[Jay]

Oh, he had time to record an interview in between calling for the mass murder of innocent North Korean civilians and supporting torture?
He truly is a prolific Neo-con.

/Jay

[Confused]

Wait, John Allison calls for mass murder of innocent North Korean civilians and supports torture? I don't believe you.

[Mike S.]

I see it's pure delusion time at reason.com

Yves Smith will set ye straight
http://www.nakedcapitalism.com.....wsuit.html

of course here at Reason everyone with any shred of credibility in any area of specialized knowledge is instantly subjected to ad hominem attacks and mercilessly pilloried based on demonstrably false information
cheers!