Photo: Ken Bennet/ Wake Forest University

From journalnow.com:

1. Allison is an Objectivist who supports pro-capitalist policies

Allison said Trump also sought his advice as an outside-the-box thinker that includes being a devotee of author Ayn Rand and her economic philosophy of objectivism, which extols rational individualism, creativity, independent thinking and a limited role for government as a protector of peace.

2. Allison calls Goldman Sach’s “crony capitalists”

[…] Allison was critical of Goldman Sachs’ role in the financial crisis, calling the investment company “crony capitalists,” in his 2013 book “The Financial Crisis and the Free Market Cure.” Mnuchin’s “history on Wall Street is not something that I am all that thrilled about,” Allison said.

3. Trump invitation comes from Pence who supports Allison’s theories on the financial crisis and also opposes TARP and eminent domain

[…] The Trump invitation came from Pence, who previously asked Allison to speak at congressional hearings about his theories on how the financial crisis occurred and his recommendations for avoiding another severe economic blow. Pence also supported Allison’s stances on TARP and eminent domain. “He thought my book was one of the best explanation of the crisis,” Allison said. “As such, he was kind enough to inform the president-elect of my qualifications to serve in his administration.”

4. Financial Choice Act is a first step that will provide an “off-ramp” to get off Dodd-Frank

Allison said he supports proposed legislation in the U.S. House, known as the Financial Choice Act, that he says would restore accountability and responsibility to the financial-services industry. The act would provide an “off-ramp from the post-Dodd-Frank supervisory regime and Basel III capital and liquidity standards for organizations that choose to maintain high levels of capital,” he said. Those financial-services companies who can’t meet those capital criteria would remain subject to Dodd-Frank regulations.

The act would require banks to remain subject to publicly disclosed regulatory stress tests but exempt those that achieve the assigned capital levels from regulatory limitations on purchases. The act also would require that “consumers be vigorously protected from fraud and deception, as well as the loss of economic liberty” and “taxpayer bailouts of financial institutions must end and no company can remain too big to fail,” he said.

5. Allison as FED Chairman?

[…] He expressed his concerns that the Federal Reserve, particularly under Chair Janet Yellen, has limited economic growth through what he considers to be burdensome regulations that may make sense to regulators but not on Main Street in terms of creating demand for loans in particular from entrepreneurs and small businesses.

When asked about his interest in serving as Fed chairman, Allison said that while he would be interested because of the opportunity to change lending policies, “I don’t know if I could get through Congress.” “It may seem old-fashioned or quaint, but I still believe in making loans by sitting across the table from the applicant and getting to know them as much as learning about their reasons for borrowing,” he said. “I believe if regulators would step back with some of the regulations, consumers tend to figure out the good and bad players in the marketplace.”

Radicals for Capitalism

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