The Financial Crisis and the Free Market Cure: Why Pure Capitalism is the World Economy's Only Hope

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McGraw Hill Professional, Sep 21, 2012 - Business & Economics - 320 pages
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The #1 Wall Street Journal Bestseller

“Required reading. . . . Shows how our economic crisis was a failure, not of the free market, but of government.”
—Charles Koch, Chairman and CEO, Koch Industries, Inc.

Did Wall Street cause the mess we are in? Should Washington place stronger regulations on the entire financial industry? Can we lower unemployment rates by controlling the free market?

The answer is NO.

Not only is free market capitalism good for the economy, says industry expert John Allison, it is our only hope for recovery. As the nation’s longest-serving CEO of a top-25 financial institution, Allison has had a unique inside view of the events leading up to the financial crisis. He has seen the direct effect of government incentives on the real estate market. He has seen how government regulations only make matters worse.

And now, in this controversial wake-up call of a book, he has given us a solution. The national bestselling The Financial Crisis and the Free Market Cure reveals:

  • Why regulation is bad for the market—and for the world
  • What we can do to promote a healthy free market
  • How we can help end unemployment in America
  • The truth about TARP and the bailouts
  • How Washington can help Wall Street build a better future for everyone

With shrewd insight, alarming insider details, and practical advice for today’s leaders, this electrifying analysis is nothing less than a call to arms for a nation on the brink. You’ll learn how government incentives helped blow up the real estate bubble to unsustainable proportions, how financial tools such as derivatives have been wrongly blamed for the crash, and how Congress fails to understand it should not try to control the market—and then completely mismanages it when it tries. In the end, you’ll understand why it’s so important to put “free” back in free market.

It’s time for America to accept the truth: the government can’t fix the economy because the government wrecked the economy. This book gives us the tools, the inspiration—and the cure.


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This book deals with very complex subject matter and explains it very well. Mr. Allison's book is incredibly well written and insightful. As a former banking executive, no one is more qualified than Mr. Allison to make these observations. I definitely recommend.

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Save your country, protect and expand our wealth.
The destructive economic idiocy of the Clinton, Bush, and Obama administrations, made it supremely easy and fast to accumulate wealth. if you would
lie to know how our nation could avoid further self destruction or how to protect yourself from further insanity, there is probably not much better place to start than this book. 


1 Fundamental Themes
2 What Happened?
The Fed as the Primary Cause
The Background Cause
The Proximate Cause
The Liquidity Challenge
7 The Residential RealEstateMarket Bubble and FinancialMarket Stress
16 TARP Troubled Asset Relief Program
17 What We Could Haveand Should HaveDone
Systematically Move Toward Pure Capitalism
Government Policy
20 Our ShortTerm Path and How to End Unemployment
21 The Deepest Cause Is Philosophical
22 The Cure is Also Philosophical
23 How the United States Could Go Broke

The Subprime Mortgage Market and Its Impact on Capital Markets
A Toxic Product of FDIC Insurance Coverage
10 How Freddie and Fannie Grew to Dominate the Home Mortgage Lending Business
11 FairValue Accounting and Wealth Destruction
A Misunderstanding
13 The Myth that Deregulation Caused the Financial Crisis
14 How the SEC Made Matters Worse
15 Market Corrections Are Necessary but Panics Are Destructive and Avoidable
24 The Need for Principled Action
25 Conclusion
About the Author

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About the author (2012)

John A. Allison is the longest-serving CEO of a top-25 financial institution, having served as Chairman of BB&T for twenty years. He currently serves as President and CEO of the Cato Institute and as a distinguished professor at the Wake Forest University Schools of Business. He is also one of the lead spokespersons for banking and policy reform today, appearing at universities and business groups nationwide and serving on the board of directors of the Ayn Rand Institute. He received a Lifetime Achievement Award from American Banker and was named one of the decade’s top 100 most successful CEOs by Harvard Business Review.

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