Bad history, worse policy: How a false narrative about the financial crisis led to the Dodd-Frank Act

Video

Event Summary

At an event on Tuesday, panelists joined AEI's Peter Wallison and Alex Pollock to discuss Wallison's new book "Bad History, Worse Policy: How a False Narrative about the Financial Crisis Led to the Dodd-Frank Act" (AEI Press, January 2013). Wallison argued that competition in the marketplace of ideas broke down after the 2008 financial crisis, resulting in a singular narrative for reform dominated by the left. As a result, the Dodd-Frank Act inappropriately increased government oversight and regulation while ignoring the fundamental cause of the crisis: excessive government involvement in the housing sector.

Panelists praised Wallison's narrative, agreeing that by ignoring the warnings outlined in the book, regulators were doomed to repeat the failures of the past. Hester Peirce of the Mercatus Center suggested that Dodd-Frank perpetuated the problems of the last recession by codifying systematically important financial institutions. Wayne Abernanthy of the American Bankers Association noted that the sheer magnitude and complexity of implementing Dodd-Frank prevented regulators from identifying the impending financial bubble. John Allison of the Cato Institute concluded that the existing narrative of the financial crisis ignores the important role the Federal Reserve played in pumping up the housing bubble.

--Andre Gardiner

Event Description

Since the passage of the Dodd-Frank Act in 2010, US economic growth has slowed. When the Volcker Rule is finalized, state and local governments will experience increased borrowing costs. The largest financial institutions will dominate the market, with funding advantages over their smaller rivals. The adverse effects of Dodd-Frank will seriously outweigh its benefits. Why did a law with these deficiencies pass in Congress?

Peter Wallison’s new book “Bad History, Worse Policy: How a False Narrative about the Financial Crisis Led to the Dodd-Frank Act,” (AEI Press, January 2013) provides the answer: the act was based on a false narrative about the causes of the financial crisis. This book release event will examine how a mistaken view of an event leads to bad policy decisions.

Copies of Wallison’s new book will be available at the event.

If you are unable to attend, we welcome you to watch the event live on this page. Full video will be posted within 24 hours.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Peter J.
Wallison

 

Alex J.
Pollock

What's new on AEI

We still don't know how many people Obamacare enrolled
image The war on invisible poverty
image Cutting fat from the budget
image Speaker of the House John Boehner on resetting America’s economic foundation
AEI on Facebook
Events Calendar
  • 15
    MON
  • 16
    TUE
  • 17
    WED
  • 18
    THU
  • 19
    FRI
Tuesday, September 16, 2014 | 5:00 p.m. – 6:00 p.m.
The Constitution as political theory

Please join us for the third-annual Walter Berns Constitution Day Lecture as James Ceasar, Harry F. Byrd Professor of Politics at the University of Virginia, explores some of the Constitution’s most significant contributions to political theory, focusing on themes that have been largely unexamined in current scholarship.

Wednesday, September 17, 2014 | 8:10 a.m. – Thursday, September 18, 2014 | 1:30 p.m.
Third international conference on housing risk: New risk measures and their applications

We invite you to join us for this year’s international conference on housing risk — cosponsored by the Collateral Risk Network and AEI International Center on Housing Risk — which will focus on new mortgage and collateral risk measures and their applications.

Thursday, September 18, 2014 | 2:15 p.m. – 3:00 p.m.
Speaker of the House John Boehner on resetting America’s economic foundation

Please join us as Speaker John Boehner (R-OH) delivers his five-point policy vision to reset America’s economy.

Friday, September 19, 2014 | 9:15 a.m. – 11:00 a.m.
Reforming Medicare: What does the public think?

Please join us as a panel of distinguished experts explore the implications of the report and the consumer role in shaping the future of Medicare.

Event Registration is Closed
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.