John B. Taylor: “this has been the stepchild of legislation. That is why we had all this predatory and abusive lending, and that is what…”

A lot of the concerns about too-big-to-fail and the anticipation of bailouts is that it does give advantages to certain institutions.

I would characterize it as they held interest rates too low for too long in that period, and that caused excesses in the housing market.

This notion is absurd. We cannot simply wish our problems away.

I don't want to see a future where quantitative easing becomes the new monetary policy