Donald Luskin
Page 33
14. Weisberg, Barney Frank.
15. Ibid.; and Toobin, “Barney’s Great Adventure.”
16. Ibid.
17. Ibid.
18. Ibid.
19. Ibid.
20. Ibid.
21. Ibid.
22. Ibid.
23. Ibid.
24. R. Wilkinson, “Frank Talk,” Mother Jones, January/February 1991.
25. Weisberg, Barney Frank.
26. George Archibald and Paul M. Rodriguez, “Sex Sold from Congressman’s Apartment,” Washington Times, August 23, 1989.
27. Weisberg, Barney Frank; and Margaret Carlson, Robert Ajemian, and Hays Gorey, “A Skeleton in Barney’s Closet,” Time, September 25, 1989.
28. Allan R. Gold, “Rep. Frank Acknowledges Hiring Male Prostitute as Personal Aide,” New York Times, August 26, 1989.
29. Charles P. Pierce, “To Be Frank,” Boston Globe, October 2, 2005.
30. Gold, “Rep. Frank.”
31. Frank Phillips, “Frank Tells of His Despair during ’89 Sex Scandal,” Boston Globe, August 14, 2004.
32. Weisberg, Barney Frank.
33. Sally Quinn, “Rep. Barney Frank, Minority Wit,” Washington Post, December 18, 1998.
34. Ayn Rand, “The Monument Builders,” in The Virtue of Selfishness (New York: New American Library, 1964).
35. Ayn Rand, “The New Fascism: Rule by Consensus,” in Capitalism, The Unknown Ideal (New York: New American Library, 1966).
36. Souphala Chomsisengphet and Anthony Pennington-Cross, “The Evolution of the Subprime Mortgage Market,” Federal Reserve Bank of St. Louis Review, January/February 2006.
37. Bill Sammon, “Lawmaker Accused of Fannie Mae Conflict of Interest,” Fox News, October 3, 2008.
38. Congressional Record, October 24, 2000.
39. Theresa R. DiVenti, “Fannie Mae and Freddie Mac: Past, Present, and Future,” Cityscape, U.S. Department of Housing and Urban Development, 2009.
40. Weisberg, Barney Frank.
41. “Two Views: Barney Frank,” Mortgage Banking, January 2004, 53–57.
42. Ibid.
43. Ibid.
44. Gretchen Morgenson, “A Coming Nightmare of Homeownership?” New York Times, October 3, 2004.
45. The OFHEO Report: Allegations of Accounting and Management Failure at Fannie Mae Hearing Before the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises of the Committee on Financial Services, U.S. House of Representatives, One Hundred Eighth Congress, Second Session, October 6, 2004.
46. Federal National Mortgage Association Annual Report, 2007.
47. Morgenson, “Coming Nightmare of Homeownership?”
48. Press release: “Delinquencies Continue to Climb in Latest MBA National Delinquency Survey,” Mortgage Bankers Association, November 19, 2009.
49. Congressional Record, June 27, 2005.
50. Congressional Record, July 25, 2006.
51. Ibid.
52. Ibid.
53. CNBC, July 14, 2008.
54. Jon Hilsenrath, Serena Ng, and Damian Paletta, “Worst Crisis Since ’30s, with No End Yet in Sight,” Wall Street Journal, September 18, 2008.
55. Peter J. Wallison, “Barney Frank, Predatory Lender,” Wall Street Journal, October 15, 2009.
56. Ibid.
57. Joe Nocera, “As Credit Crisis Spiraled, Alarm Led to Action,” New York Times, October 1, 2008.
58. Carrie Bay, “Probe Finds WaMu’s Demise in Subprime Lending, Regulatory Turf War,” DS News, April 16, 2010.
59. Edmund L. Andrews, “U.S. Shifts Focus in Credit Bailout to the Consumer,” New York Times, November 12, 2008, www.nytimes.com/2008/11/13/business/economy/13bailout.html?_r=1&hp&oref=slogin.
60. Press release: “Treasury Emails Suggest Rep. Barney Frank Called Former Treasury Secretary Paulson to Obtain TARP Cash for OneUnited Bank,” Judicial Watch, March 31, 2010.
61. Weisberg, Barney Frank.
62. Aaron Task interview, July 20, 2009, http://finance.yahoo.com/tech-ticker/article/285683/Barney-Frank-Don’t-Blame-Me-for-the-Housing-Bubble?tickers=len,fnm,fre,kbh,tol,xhb,hd.
63. Massachusetts Democratic State Convention Kickoff Party hosted by Young Democrats of Massachusetts and Worcester County Young Democrats, June 4, 2010.
Chapter 7 The Capitalist Champion
1. This and all Rodgers quotations in this chapter, and recollections by Rodgers of statements of others, unless otherwise noted, are from a January 2011 author interview.
2. Richard Brandt, “The Bad Boy of Silicon Valley,” BusinessWeek, December 9, 1991, 64–69.
3. T. J. Rodgers,“Statement of Dr. T. J. Rodgers,” Senate Committee on Governmental Affairs, Subcommittee on Oversight, June 3, 1997.
4. T. J. Rodgers, “Why Silicon Valley Should Not Normalize Relations with Washington D.C.,” Cato Institute, November 19, 1998.
5. “SEMATECH History,” SEMATECH web site.
6. United States General Accounting Office, “Report to Congressional Requestors: Assessment of the Financial Audit for SEMATECH’s Activities in 1991,” December 1992.
7. Brandt, “Bad Boy of Silicon Valley.”
8. Ibid.
9. T. J. Rodgers, No Excuses Management (New York: Doubleday, 1992).
10. Cypress Semiconductor Corporation, Annual Report, 2009.
11. T. J. Rodgers, “Profits vs. PC,” Reason, October 1996, 36.
12. Ibid.
13. T. J. Rodgers, “Valley Should Stand Up to Jackson’s Divisive Tactics,” San Jose Mercury News, March 14, 1999.
14. Deroy Murdock, “Jesse Jackson’s Corporate Cash Cow,” Chief Executive, July 2001.
15. Leonard Peikoff, “The Analytic-Synthetic Dichotomy,” in Ayn Rand, Introduction to Objectivist Epistemology, ed. Harry Binswanger and Leonard Peikoff (New York: Penguin, 1990).
16. Ayn Rand, “The Metaphysical versus the Man-Made,” in Philosophy: Who Needs It (New York: Signet, 1984).
17. T. J. Rodgers, “Holding Up the Shareholder,” New York Times, April 29, 1997.
18. SunPower Corporate History.
19. “Cypress Announces Investment in Designer and Manufacturer of Ultra-High-Efficiency Silicon Solar Cells,” SunPower Press Release, May 31, 2002.
20. www.fool.com/investing/high-growth/2005/11/17/sunpower-shines.aspx.
21. http://finance.yahoo.com/q/ks?s=SPWRA+Key+Statistics.
22. T. J. Rodgers, “Prop 23 and the Green Jobs Myth,” Wall Street Journal, October 29, 2010.
Chapter 8 The Sellout
1. House Committee on Oversight and Government Reform, Hearing on the Financial Crisis and the Role of Federal Regulators, October 23, 2008.
2. Alan Greenspan, “We Will Never Have a Perfect Model of Risk,” Financial Times, March 16, 2008.
3. House Committee Hearing, October 23, 2008.
4. Alan Greenspan, “The Assault on Integrity,” Objectivist Newsletter, August 1963.
5. Ibid.
6. William Bonner with Addison Wiggin, Financial Reckoning Day (Hoboken, NJ: John Wiley & Sons, 2003).
7. Alan Greenspan, The Age of Turbulence (New York: Penguin Books, 2007).
8. Nathaniel Branden, My Years with Ayn Rand (San Francisco: Jossey-Bass Publishers, 1999).
9. Ibid.
10. Ibid.
11. Anne Heller, Ayn Rand and the World She Made (New York: Doubleday, 2009).
12. Branden, My Years with Ayn Rand.
13. Ibid.
14. Ibid.
15. R. W. Bradford, “Alan Greenspan—Cultist? The Fascinating Personal History of Mr. Pinstripe,” American Enterprise, September/October 1997.
16. Branden, My Years with Ayn Rand.
17. Barbara Branden, The Passion of Ayn Rand (New York: Doubleday, 1986).
18. Branden, My Years with Ayn Rand.
19. Greenspan, Age of Turbulence.
20. Bonner with Wiggin, Financial Reckoning Day.
21. Jerome Tucille, Alan Shrugged (Hoboken, NJ: John Wiley & Son
s, 2002).
22. Greenspan, Age of Turbulence.
23. Ibid.
24. Ibid.
25. Ibid.
26. Ibid.
27. Heller, Ayn Rand.
28. Branden, Passion of Ayn Rand.
29. Heller, Ayn Rand.
30. Ibid.
31. Ibid.
32. Alan Greenspan, “Gold and Economic Freedom,” Objectivist Newsletter, July 1963.
33. Ibid.
34. Greenspan, Age of Turbulence.
35. Bonner with Wiggin, Financial Reckoning Day.
36. Alan Greenspan, “The Challenge of Central Banking in a Democratic Society,” at the Annual Dinner and Francis Boyer Lecture of the American Enterprise Institute for Public Policy Research, Washington, D.C., December 5, 1996.
37. Alan Greenspan, “The Crisis,” at the Brookings Institution, April 15, 2010.
38. Ibid.
39. John Taylor, “Housing and Monetary Policy,” at the Kansas City Federal Reserve Bank Economic Symposium, Jackson Hole, Wyoming, August 2007.
40. Alan Greenspan, Federal Reserve Board’s semiannual monetary policy report to the Congress, before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, July 16, 2002.
41. Greenspan, “Crisis.”
Chapter 9 The Economist of Liberty
1. Milton Friedman, Capitalism and Freedom (Chicago: University of Chicago Press, 1962).
2. Ben Bernanke, “Remarks by Governor Ben S. Bernanke at the Conference to Honor Milton Friedman,” November 8, 2002.
3. Arnold Beichman, “Letters to the Editor: How Wrong Can You Get?” Wall Street Journal (Eastern edition), November 17, 1994, A.25.
4. Ibid.
5. Ibid.
6. Introduction to PBS’s Free to Choose.
7. Rupert Cornwell, “Milton Friedman, Free-Market Economist Who Inspired Reagan and Thatcher, Dies Aged 94,” The Independent, November 17, 2006.
8. “The Intellectual Provocateur,” Time, December 19, 1969.
9. Brian Doherty, Radicals for Capitalism (Cambridge, MA: PublicAffairs, 2007).
10. Milton Friedman, “Banquet Speech” at the Nobel banquet, December 10, 1976.
11. PBS, “The Commanding Heights,” October 2, 2000, www.pbs.org/wgbh/commandingheights/shared/pdf/int_georgeshultz.pdf.
12. Phil Donohue Show, 1979.
13. Friedman, Capitalism and Freedom.
14. Milton Friedman, Essays in Positive Economics (Chicago: University of Chicago Press, 1953).
15. Milton Friedman, “Friedman—Autobiography,” Nobelprize.org, March 1, 2011.
16. Lanny Ebenstein, Milton Friedman: A Biography (New York: Palgrave Macmillan, 2007).
17. Milton Friedman, “My Favorite Libertarian Books,” Foundation for Economic Education, April 2002.
18. Milton Friedman, “Homer Jones: A Personal Reminiscence,” Journal of Monetary Economics 2, 1976.
19. Ibid.
20. Friedman, “Friedman—Autobiography.”
21. Ibid.
22. Matthew J. Dickinson, Bitter Harvest: FDR, Presidential Power and the Growth of the Presidential Branch (New York: Cambridge University Press, 1996).
23. Milton and Rose Friedman, Two Lucky People: Memoirs (Chicago: University of Chicago Press, 1998).
24. Friedman, “Friedman—Autobiography.”
25. Milton Friedman and George J. Stigler, “Roofs or Ceilings? The Current Housing Problem,” Popular Essays on Current Problems, September 1946.
26. William Breit and Barry T. Hirsch, Lives of the Laureates: Twenty-Three Nobel Economists (Cambridge, MA: MIT Press, 2009).
27. Leonard Silk, The Economists (New York: Avon Books, 1978).
28. Robert Bangs, “Reviewed Work: ‘Roofs or Ceilings? The Current Housing Problem’ by Milton Friedman, George J. Stigler,” American Economic Review, June 1947.
29. Milton Friedman, “George Stigler: A Personal Reminiscence,” Journal of Political Economy 101, no. 5 (October 1993): 768–773.
30. Ayn Rand, Letters of Ayn Rand, ed. Michael S. Berliner (New York: Dutton, 1995).
31. “The Economy: We Are All Keynesians Now,” Time, December 31, 1965.
32. Milton Friedman, “The Role of Monetary Policy,” American Economic Review, March 1968.
33. Friedman, Nobel banquet speech.
34. Friedman, Capitalism and Freedom.
35. Friedman, “George Stigler.”
36. Milton and Rose Friedman, Two Lucky People.
37. Phil Donohue Show, 1979.
38. Free to Choose (1980), PBS segment 2 of 10, “The Tyranny of Control.”
39. Free to Choose (1980), PBS segment 5 of 10, “Created Equal.”
40. Editorial: “A 40-Year Wish List,” Wall Street Journal, January 28, 2009.
41. Milton Friedman, Why Government Is the Problem (Stanford, CA: Hoover Press, 1993).
42. Ibid.
43. Milton Friedman, “Schools at Chicago,” University of Chicago Record, 1974.
44. Fox News interview, May 2004.
45. “Business: The Rising Risk of Recession,” Time, December 19, 1969.
46. Milton Friedman, “We Have Socialism, Q.E.D.,” New York Times, December 31, 1989.
47. Friedman, Capitalism and Freedom (20th anniversary ed., 1982).
48. Friedman, Free to Choose.
49. Ebenstein, Milton Friedman.
50. Interview with Richard Heffner on The Open Mind, WNET, December 7, 1975.
51. Ebenstein, Milton Friedman.
52. PBS, “The Commanding Heights.”
Afterword
1. “New York Times Columnist Paul Krugman,” Fresh Air, WHYY, February 25, 2003.
2. Anne Heller, Ayn Rand and the World She Made (New York: Knopf, 2009).
Acknowledgments
Thanks to Pamela van Giessen at John Wiley & Sons, who patiently waited eight years for this book and put together the team that made it possible. We couldn’t have done it without Emilie Herman, who set the deadlines and almost made us meet them—and the production team at Wiley, who tried their best to meet all theirs under extraordinary circumstances. And special thanks to Peter Canelias, a lawyer who should be an editor if he’d take a cut in pay.
Thanks to the wonderful people at BB&T who allowed us to interview them about the role of Ayn Rand’s philosophy in their lives—John A. Allison, Kelly S. King, Christopher L. Henson, Edward D. Vest, Carla Fox, Timothy R. Davis, and Gena Reiswig. And thanks to the tireless Bob Denham, who made the interviews possible.
Thanks to T. J. Rodgers for an inspiring and exhausting four hour-plus interview—and the wine.
Thanks to Alan Greenspan, who did not agree to an interview, but who met with us and shared his enduring belief in Rand’s ideas.
In addition, Don thanks Amanda Urban, who is not his agent, but who set us on the path of writing about Rand in today’s world. And thanks to David Duval, who introduced Don to Ellsworth Toohey.
Andrew thanks Dave Kansas, a fellow TheStreet.com alum, for the introduction to Pamela. And thanks to the Aurora Public Library for its speedy and responsive research assistance.
About the Authors
Donald L. Luskin is chief investment officer of TrendMacro, an investment strategy and economics research firm. He is formerly vice chairman and co–chief investment officer of Barclays Global Investors. After a decade building Wells Fargo Investment Advisors into the world’s largest and most innovative investment manager—where indexing, tactical asset allocation, and quant-active investing were invented and popularized—Don was a member of the three-man management team that sold the firm to Barclays Bank PLC in 1995. The firm was acquired by BlackRock in 2009.
While at Barclays, Don invented and patented target-date mutual funds, which have become a standard for retirement investment. Don was the inventor of the POSIT electronic communication network (ECN), and founder of the Investment Technology Group. He was CEO of MetaMarkets.com. He has been a hedge fund manager and an options market
maker on the Chicago Board Options Exchange, the Pacific Stock Exchange, and the New York Stock Exchange.
Don appears weekly on CNBC’s Kudlow & Company. He contributes frequently to the op-ed page of the Wall Street Journal. His articles and commentaries have been published in Reason, the Harvard Business Review, National Review, Pensions & Investments, Townhall, the American Spectator, the San Jose Mercury News, and the Detroit News. He was formerly a columnist for TheStreet.com, Business 2.0 (now FastCompany), and SmartMoney.com.
He is the author of Index Options and Futures: The Complete Guide, and editor of Portfolio Insurance: The Guide to Dynamic Hedging, both published by John Wiley & Sons.
Andrew Greta is an author and business executive with more than fifteen years of experience in the financial markets. He currently holds an appointment with the College of Business at the University of Illinois in Champaign-Urbana. Previously, Andrew led corporate and business development at CME Group in Chicago—the world’s largest and most diverse financial exchange. Andrew also served as Director, Global Business Development for General Electric, where he led global mergers and acquisitions, divestitures, and strategic partnership deals for one of GE’s financial services divisions.
Andrew is a former contributing editor for TheStreet.com. His articles on finance and investing topics have appeared in numerous national publications, including Stocks, Futures & Options, DS News, ABCNews.com, Online Investor, and Individual Investor.
Andrew began his career as a financial adviser with Prudential Securities and holds an MBA from the Krannert Graduate School of Management at Purdue University. He currently lives in the Midwest with his wife Emily and daughter Lucy.
Index
AB32 (carbon emissions tax law)
Adjustable-rate mortgage (ARM)
Advanced Micro Devices (AMD)
Advanced Microsystems, Inc. (AMI)
Akston, Hugh
character description
Milton Friedman comparison
Alcorn, Al
Allen, Paul
Allison, John. See also Branch Banking and Trust Company (BB&T)
on BB&T corporate philosophy
on charity
enthusiasm for Rand literature
on honesty
on independent thinking