ON-Lion Letter
As part of the Bradley Distinguished Lecture Series, sponsored by The Lynde and Harry Bradley Foundation in Milwaukee and the Sheldon B. Lubar School of Business at the University of Wisconsin-Milwaukee (UWM), John B. Taylor spoke in Milwaukee in mid-March about how government actions and interventions caused, prolonged, and worsened the financial crisis currently facing the U.S.

Taylor is the Bowen H. and Janice Arthur McCoy Senior Fellow at the Hoover Institution on War, Revolution and Peace, projects of which are also supported by the Bradley Foundation, and the Robert Raymond Professor of Economics at Stanford University in California.  He has been an economic-policy advisor to several presidents and is author of Getting Off Track:  How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis, newly published by Hoover Press.

During his UWM lecture to about 150 people, Taylor summarized Getting Off Track's research and conclusions.  As detailed in the book, he believes the government got off track by deviating from sound principles for setting interest rates that had worked well for 20 years.  This deviation accelerated the housing boom and led to the housing bust, foreclosures, defaults, and toxic assets on the balance sheets of financial institutions.  Were there no such boom, of course, there would have been no bust.

Taylor also spoke about the mostly negative effects of the federal stimulus plan passed in the wake of the bust, as well as about proposed future stimulus plans.
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