Getting off Track
This video from ReasonTV shows you an interview with John B.taylor about his book Getting off Track.
Getting off Track
John B. Taylor
Michael: Hi I’m Michael Moynihan with Reason TV and today we’re talking to
John B. Taylor author of Getting off Track government actions and
interventions caused prolonged and worsened with natural crisis. John is a
professor at Stanford University and fellow at the Hoover Institution.
John, give us a rough idea of the premise of this book and why this seems
to go against the general conventional media wisdom about the financial
John: Well the conventional wisdom is market screwed up and need to have a lot
of regulation and rarely is the role of government mentioned and of a
positive way of maybe having caused this so what I did is look at the data,
looked at the numbers didn’t really try to look for a particular reason but it
kept popping up in each case government seem to be there trying to do too
much frequently trying to intervene too much and actually made things
worse and that’s what I found.
Michael: Give us an example of a government intervention that either created or
helped create or even prolong the crisis?
John: Well I think the easiest example is to go back to last fall when you had this
panic and the markets crashed and you had there you see the government
coming forth with a huge package 700 billion dollars and the secretary of
treasury and the chamber of the federation reserve going to the banking
committee and with only 2-1/2 pages of legislation. Kind of talking the
economy down in order to attract interest and people are kind shocked
quite frankly and I think that had a lot to do with the lack of trust, the lack
of confidence and people realized that one didn’t have much of a plan at
that point and try tried to intervene but made it look…
Michael: Yeah what do you make of the current situation, the bailouts, the trillions
of dollars that are being thrown to guide us where?
John: Well ironically it’s just more of the same, you know, basically but instead
of looking at what is actually happening with these government
interventions you just doing them some more and so this large stimulus
package 787 billion dollars doesn’t do much to stimulate the economy. We
tried that last year, had a big stimulus package in 2008, it didn’t’ work.
We’re doing it again.
Now we’ll plan to deal with the banks and how to articulate them very
clearly. The uncertainty again tanks the market so it’s really a continuation
in some sense even worse.
Michael: I mean is there inevitability about the rebound of the American economy
and if that does take place let’s say in the next couple of years does it are
we in a difficult position as relatively food market people that the Obama
administration and it’s supporters will take credit for the recovery of
John: It’s a possibility and it’s always a possibility to say this work that didn’t
work and not looking at the data. I hope people look at the numbers
because you can really find out what’s going on so I just listen to
somebody say something, look what actually happened it’s pretty
convincing to me.
Michael: We have 5 chapters here and every one of them is pretty much a question,
what caused the financial crisis is chapter 1-15 pages could you give it to
us in a couple of seconds?
John: Monetary access is the Federal Reserve that took the interest rate down to
very low levels 1% kept it there for a long time that generated a housing
boom because interest rates were so low. Housing boom inevitably brings
a Boston all the foreclosures and all of the bad debt that comes from that
so monetary access is.
Michael: Second chapter is another 10 to 15 pages of what prolonged the crisis?
John: Prolonging the simple thing is missed diagnosed. It’s like a patient comes
in got cancer. The doctor says you got a digestive problem treats it with
something to give the indigestion and the cancer gets worse and in this
case the misdiagnosis was that they thought it was just acquitted, not
enough money in fact there was a problem in the banks. Banks had
problems on their balance sheets.
Michael: Let me skip ahead to the forth chapter which is a bit of a positive mode.
What went right in the two decades before the crisis I can imagine
anything going right on the economy at all but two decades before things
are going swimming, right?
John: Absolutely you know you think about it, it was the economist called this
period the great moderation or the long boom because long expansions
and really short recessions people forget what big recessions were but
since the early 80s all the way through actually now this is serious
recession very smooth times and again not a lot of intervention kind of a
hands off policy in any respects monetary policy following pretty clear
guidelines, a lot of deregulation policies of freed up markets. Lower tax
rates, it’s all those things which generated a consistently strong economy
for almost five years at least 2 decades.
Michael: So now we are in a difficulty we’re in D.C a danger that we are going to
have you know obviously the amount of government differential we’ve
had in the past couple of months is frightening. New regulation bad policy
what do you see as the idiotic solutions that people are trying to put?
John: I’m very concerned with that because again my story here isn’t told very
much, the story government was really at the center of this and causing the
problems because usually there’s a problem with the market so we go to
do even more of these things. You now president Obama talking about the
all new solutions is government and so I’m worried quite frankly we’re
going to be doing the wrong thing for a while it’s going to take awhile to
get back on track you now.
It took when Reagan came in early 80s that was getting back on track
issue it doesn’t even have good performance in the 70s high inflation a lot
of instability so it’s going to take some effort in the love communication
and showing people that in fact the second role with the market system a
lot of intervention causes problems.
Michael: Thank you John for coming by thanks for talking to us.
John: Yeah enjoy.
Michael: And everyone should go out and pick up Getting off Track which is
available Amazon.com and for Reason.TV I’m Michael Moynihan.
Getting off Track
Off the Beaten Track Adventures offer you experiences and insights that are unique and have not been explored to their full potential. Discover India tours that take you beyond the Taj Mahal, the Golden Temple at Amritsar, and the Khajuraho Temples are also the most exciting and stimulating ones for international tourists....
GPS dog tracking devices have gained in popularity these days and with good reason as well. Dog owners will certainly want to do everything in their power to ensure that their pet dogs never get lost and so will even turn to making full use of a GPS pet tracking device. Such a device will essentially help the dog owner to track their pet dog, especially after the pet has strayed out of his normal area of movement....
GPS has been with us for decades now. GPS, or Global Positioning System, was invented and put into place in the 1970\'s and 1980\'s. In the 90\'s GPS was made available for commercial use...
Garage doors are usually moved up and down to use; if your garage door give problem off track, you must fix it immediately because you keep not only your car in the garage but there are many valuables which are kept in the garage; open or loose door of the garage may give you a big loss....
The U.S. economy is in the doldrums and, although the pace of job-loss appears to be slowing, the number of Americans claiming unemployment benefits is still at record levels - 6.35 million as of April 25. Further job losses can be expected in the months ahead as consolidations and reorganizations continue....
Rolling over, I pulled the pillow over my head blocking the sunlight streaming in the window from reaching my eyes. It felt like the world was caving in. No job a broken car, and three young kids, I just wanted to make it be night again so that I could sleep some more. I was grateful for one thing, this is the weekend my ex had the kids. I desperately needed this time to be alone. I was exhausted from the stress of it all. I had been interviewing for a new position but to no avail. I hadn't been able to find anything, everyone wanted more experience more education, even if I had everything they listed on their classified advertisement. I was at my wits end. I started to look for opportunities, I had to make money and soon, I'd heard that this was a great opportunity; I just wasn't sure where to look until I spent a couple of days looking over different options. I had to get my life back on track! I did was to looked for ways to not be a statistic, I was determined not to get ripped off....
Job security has become an illusion these days. And you're one of those people who've just been laid off from their job. Discover practical solutions to get back on track, especially if you have some Internet-related skills....
It is without question living with a bankruptcy can be quite unbearable, especially if forced to sell your possessions to pay off your debt. Here are 7 tips when applied effectively can help you get your life back on track....
Getting Back on Track with your 401k might seem harder than it actually is. You basically have three options....
Let's say you just invested in some pretty channel letters for your business. You got the nice 3-dimensional graphic sign elements fabricated out of no-rust aluminum. The letters were sealed with weather-resistant paint, fitted with LED modules and covered with a nice translucent plastic face. You witched them on and everything looked like Christmas on the 4th of July. Until the pest birds ca...