I Am John Galt
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69. Paul Krugman, “What They Did Last Fall,” New York Times, August 19, 2005.
70. Donald Luskin, “This Again?” Conspiracy to Keep You Poor and Stupid blog, August 19, 2005.
71. Ford Fessendon and John M. Broder, “Study of Disputed Florida Ballots Finds Justices Did Not Cast the Deciding Vote,” New York Times, November 12, 2001.
72. Paul Krugman, “Don’t Prettify Our History,” New York Times, August 22, 2005.
73. Byron Calame, “The Story of a Correction,” Public Editor’s Journal blog, New York Times, September 2, 2005.
74. Paul Krugman, “Summer of Our Discontent,” New York Times, August 26, 2005.
75. Calame, “Story of a Correction.”
76. Paul Krugman, “Correction: From Paul Krugman,” New York Times web site, October 2, 2005.
77. Byron Calame, “Columnist Correction Policy Isn’t Being Applied to Krugman,” Public Editor’s Journal blog, New York Times, September 16, 2005.
78. Byron Calame, “Columnist Correction Policy to Be Addressed,” Public Editor’s Journal blog, New York Times, September 28, 2005.
79. Gail Collins, “A Letter from the Editor: It All Goes on the Permanent Record,” New York Times, October 2, 2005.
80. “For the Record,” New York Times, October 2, 2005.
81. Paul Krugman, “Assassination Attempt in Arizona,” Conscience of a Liberal blog, New York Times web site, January 8, 2011.
82. James Taranto, “‘It Did Not,’” Best of the Web Today blog, Wall Street Journal web site, January 13, 2011.
Chapter 3 The Leader
1. This and all quotations in this chapter, unless otherwise noted, are from December 2009 author interviews with the person quoted.
2. This and all other quotations of BB&T’s philosophy, mission, and values are from BB&T: The BB&T Philosophy, 1998.
3. John Allison, “The Financial Crisis, Causes and Possible Cures,” speech at the Ayn Rand Center for Individual Rights, January 29, 2009.
4. Ibid.
5. Ibid.
6. John Allison, “Allison on Strategy, Profits and Self-Interest,” interviewed by Russell Roberts on Econtalk podcast at the Library of Economics and Liberty web site, May 7, 2007.
7. Allison, “Financial Crisis.”
8. Ibid.
9. Ibid.
10. Allison, “Allison on Strategy.”
11. Allison, “Financial Crisis.”
12. Ibid.
13. Ibid.
14. Ibid.
15. Ibid.
16. Allison, “Allison on Strategy.”
17. Ibid.
18. Aristotle, The Nicomachean Ethics, trans. James Alexander, Kerr Thomson, Hugh Tredennick, and Jonathan Barnes (New York: Penguin Classics, 1955).
19. Aristotle, Rhetoric, ed. James H. Freese (Tufts University, Perseus Project web site), 1378b.
20. Allison, “Allison on Strategy.”
21. Ayn Rand, The Virtue of Selfishness (New York: Signet, 1964).
22. Allison, “Allison on Strategy.”
23. Ibid.
24. Ibid.
25. Ibid.
26. Allison, “Financial Crisis.”
Chapter 4 The Parasite
1. Jeff Bailey, “The Mortgage Maker vs. the World,” New York Times, October 16, 2005.
2. Shawn Tully, “Meet the 23,000% Stock,” Fortune, September 15, 2003.
3. Angelo Mozilo, “From the Bronx to the Boardroom,” Directorship, September 2007.
4. Federal National Mortgage Association Annual Report, 2003.
5. Bethany McLean and Joe Nocera, All the Devils Are Here (New York: Penguin, 2010).
6. John Tierney, “Privileged Life in Peril for 2 Mortgage Giants,” New York Times, June 17, 2003.
7. Ibid.
8. “Friends of Angelo: Countrywide’s Systematic and Successful Effort to Buy Influence and Block Reform,” Staff Report, U.S. House of Representatives, 111th Congress, Committee on Oversight and Government Reform, March 19, 2009.
9. Mozilo, “From the Bronx.”
10. Tierney, “Privileged Life.”
11. McLean and Nocera, All the Devils.
12. Securities and Exchange Commission v. Angelo Mozilo, David Sambol, and Eric Sieracki, Case No. CV09-03994, United States District Court, Central District of California, June 4, 2009.
13. United States Securities and Exchange Commission, Excerpts of E-Mails from Angelo Mozilo.
14. SEC v. Mozilo et al.
15. SEC v. Mozilo, Case 2:09-cv-03994-JFW-MAN, Document 301, filed August 16, 2010, page 17 of 47.
16. Countrywide Financial Corporation Q2 2007 earnings call, July 24, 2007.
17. Ibid.
18. Liz Moyer, “Countrywide, Markets on the Ropes,” Forbes, August 16, 2007.
19. Liz Moyer, “Countrywide Is on Its Side,” Forbes, August 16, 2007.
20. Ibid.
21. Federal Reserve press release, August 17, 2007.
22. McLean and Nocera, All the Devils.
23. Mozilo, “From the Bronx.”
24. Bailey, “Mortgage Maker.”
25. Gretchen Morgenson and Geraldine Fabrikant, “Countrywide’s Chief Salesman and Defender,” New York Times, November 11, 2007.
26. David Stix, “Naive, Egotistical, but Smart,” Forbes, October 1, 1990.
27. McLean and Nocera, All the Devils.
28. Paul Muolo and Matthew Padilla, Chain of Blame: How Wall Street Caused the Mortgage and Credit Crisis (Hoboken, NJ: John Wiley & Sons, 2008).
29. Ibid.
30. Ibid.
31. Ibid.
32. Letter from Representative Darrell Issa to Alfred M. Pollard, General Counsel, FHFA, July 20, 2010.
33. Albert Crenshaw, “High Pay at Fannie Mae for the Well-Connected,” Washington Post, December 23, 2004.
34. Annys Shin, “Examining Fannie Mae,” Washington Post, May 4, 2006.
35. Crenshaw, “High Pay.”
36. Morgenson and Fabrikant, “Countrywide’s Chief Salesman.”
37. Federal National Mortgage Association Annual Report, 2003.
38. U.S. Census Bureau, Current Population Reports, August 2008.
39. Angelo Mozilo, “Act Now to Make Every Month National Homeownership Month,” Mortgage Banking, June 2004, 16–18.
40. Steven A. Holmes, “Fannie Mae Eases Credit to Aid Mortgage Lending,” New York Times, September 30, 1999.
41. Jonah Goldberg, “Wall Street Fat Cats Aren’t at Fault This Time,” National Review, September 19, 2008.
42. Gretchen Morgenson, “Inside the Countrywide Lending Spree,” New York Times, August 26, 2007.
43. “Friends of Angelo,” op. cit.; Glenn R. Simpson and James R. Hagerty, “Countrywide Friends Got Good Loans,” Wall Street Journal, June 7, 2008.
44. “Friends of Angelo,” op. cit.
45. Ibid.
46. Ibid.
47. Ibid.
48. Daniel Golden, “Countrywide’s Many Friends,” Condé Nast Portfolio, June 12, 2008.
49. “Friends of Angelo,” op cit.
50. Dan Golden, “Angelo’s Many ‘Friends,’” Condé Nast Portfolio, July 16, 2008.
51. Ibid.
52. “Friends of Angelo,” op. cit.
53. Glenn R. Simpson and James R. Hagerty, “Countrywide Friends Got Good Loans—Mozilo Sought, Received Better Rates for Some: Problems for Fannie Mae?” Wall Street Journal, June 6, 2008.
54. “Friends of Angelo,” op cit.
55. Morgenson, “Inside Countrywide Lending Spree.”
56. Jody Shenn, “ARMed—Not ‘Stuck’: Bank Making Countrywide Less Rate Sensitive,” American Banker, June 21, 2004.
57. Bailey, “Mortgage Maker.”
58. McLean and Nocera, All the Devils.
59. Morgenson, “Inside Countrywide Lending Spree.”
60. Ibid.
61. McLean and Nocera, All the Devils.
62. Ibid.
63. United States District Court Central District of California, Civi
l Minutes—General, Securities and Exchange Commission -v- Angelo Mozilo, et al., Case 2:09-cv-03994-JFW-MAN, Document 351, filed September 16, 2010.
64. Mortgage Guaranty Insurance Corporation v. Countrywide Home Loans, Inc., and BAC Home Loans Servicing, LP (Formerly Countrywide Home Loans Servicing, LP), February 24, 2010.
65. Jody Shenn, “Fannie, Freddie Subprime Sprees May Add to Bailout,” Bloomberg, September 22, 2008.
66. Ibid.
67. Ibid.
68. “Friends of Angelo,” op. cit.
69. Gretchen Morgenson, “How Countrywide Covered the Cracks,” New York Times, June 27, 2006.
70. Mortgage Guaranty Insurance Corporation v. Countrywide Home Loans, Inc., et al., op. cit.
71. Countrywide Financial Corporation Q2 2007 earnings call, July 24, 2007.
72. Mortgage Guaranty Insurance Corporation v. Countrywide Home Loans, Inc., et al., op. cit.
73. Ibid.
74. RealtyTrac, “U.S. Foreclosure Activity Increases 75 Percent in 2007,” January 29, 2008.
75. Glenn Setzer, “SEC Turns Spotlight on Countrywide CEO Mozilo,” Mortgage News Daily, October 18, 2007.
76. “Countrywide CEO Angelo Mozilo Awarded $22.1 Million in Compensation,” New York Times, April 25, 2008.
77. “Bank of America to Acquire Countrywide: Deal for Country’s Largest Mortgage Lender Valued at $4.1 Billion,” Associated Press, January 11, 2008.
78. Claire Suddath, “Biggest Golden Parachutes,” Time, October 8, 2008.
79. Peter J. Wallison and Charles W. Calomiris, “The Last Trillion-Dollar Commitment: The Destruction of Fannie Mae and Freddie Mac,” American Enterprise Institute, September 2008.
80. Fannie Mae 2008 Q2 10Q Investor Summary Presentation, August 8, 2008.
81. “Timeline: Events Leading to the Fannie, Freddie Rescue,” Reuters, July 26, 2008.
82. Dawn Kopecki, “Fannie, Freddie ‘Insolvent’ after Losses, Poole Says,” Bloomberg, July 10, 2008.
83. David Bogoslaw, “Fannie Mae and Freddie Mac: A Damage Report,” BusinessWeek, August 29, 2008.
84. Andrew Ross Sorkin, “Paulson’s Itchy Finger, on the Trigger of a Bazooka,” New York Times, September 8, 2008.
85. Nick Timiraos, “Views Conflict on Fannie Meltdown,” Wall Street Journal, April 14, 2010.
86. Ibid.
87. SEC v. Mozilo, op. cit.
88. United States District Court, Central District of California, Civil Minutes—General, Securities and Exchange Commission -v- Angelo Mozilo, et al., Case 2:09-cv-03994-JFW-MAN, Document 351, filed September 16, 2010.
89. United States District Court, Central District of California, Civil Minutes—General, Securities and Exchange Commission -v- Angelo Mozilo, et al., Case 2:09-cv-03994-JFW-MAN, Document 301, filed August 16, 2010.
90. Walter Hamilton and E. Scott Reckard, “Angelo Mozilo, Other Former Countrywide Execs Settle Fraud Charges,” Los Angeles Times, October 16, 2010.
Chapter 5 The Persecuted Titan
1. Joel Brinkley, “U.S. versus Microsoft: The Overview; U.S. Judge Declares Microsoft Is a Market-Stifling Monopoly; Gates Retains Defiant Stance,” New York Times, November 6, 1999.
2. United States of America v. Microsoft Corporation, Civil Action No. 98-1232 (TPJ) Court’s Findings of Fact, November 5, 1999.
3. Robert Slater, Microsoft Rebooted: How Bill Gates and Steve Ballmer Reinvented Their Company (New York: Penguin, 2004).
4. Stephen Manes and Paul Andrews, Gates: How Microsoft’s Mogul Reinvented an Industry and Made Himself the Richest Man in America (New York: Simon & Schuster, 1993).
5. James Glassman, “A Right to an Internet Connection?” American Enterprise, April/May 2000.
6. GartnerGroup, “GartnerGroup’s Dataquest Says Worldwide PC Market Topped 21 Percent Growth in 1999,” press release, January 24, 2000.
7. Peter Newcomb et al., “The Forbes 400 America’s Richest People,” Forbes, October 22, 1999.
8. CIA World Factbook, 1999.
9. Chris Long, “Gates Opens Up (Cover Story),” The Director, April 1999.
10. Slater, Microsoft Rebooted.
11. Ibid.
12. Fortune 500, 1999, and Edward Rothstein, “Wronging Microsoft,” Commentary, September 2001.
13. John Markoff, “For Microsoft’s Rivals, It’s a Question of Fairness,” New York Times, July 19, 1993.
14. Rothstein, “Wronging Microsoft,” and United States Senate, Lobbying & Disclosure Act Database.
15. Mark Lewyn, “Going After Microsoft,” National Review, January 24, 1994.
16. Rothstein, “Wronging Microsoft.”
17. M. Rogers and J. Stone, “The Whiz They Love to Hate,” Newsweek, June 24, 1991.
18. U.S. Department of Justice, press release: “Microsoft Agrees to End Unfair Monopolistic Practices,” July 16, 1994.
19. Slater, Microsoft Rebooted.
20. Steven Levy, “Behind the Gates Myth,” Newsweek, August 30, 1999.
21. Adam Cohen, “Microsoft Enjoys Monopoly Power,” Time, November 15, 1999, 46.
22. United States Court of Appeals for the District of Columbia Circuit, Argued February 26 and 27, 2001. Decided June 28, 2001. No. 00-5212: United States of America, Appellee v. Microsoft Corporation, Appellant. Consolidated with 00-5213 Appeals from the United States District Court for the District of Columbia (No. 98cv01232) (No. 98cv01233).
23. Levy, “Behind the Gates Myth.”
24. Todd Bishop, “Software Notebook: ‘Evil Empire’ Microsoft Warms to Open Source,” Seattle Post-Intelligencer, August 15, 2005.
25. Adam Cohen and Declan McCullagh, “Demonizing Gates,” Time, November 2, 1998.
26. Rogers and Stone, “Whiz They Love to Hate.”
27. James Henry, “Silicon Bully: How Long Can Bill Gates Kick Sand in the Face of the Computer Industry?” Business Month, November 1990.
28. Levy, “Behind the Gates Myth.”
29. Michael Paulson and Dan Richman, “Microsoft Ruled a Monopoly: Company’s Conduct Has Hurt Consumers, Judge Says,” Seattle Post-Intelligencer, November 6, 1999.
30. Tom Stein, “Microsoft Ruled a Monopoly: Court Finds Firm Abused Its Power,” report from MSFT Press Conference, November 6, 1999.
31. Ayn Rand, “What Is Capitalism?” in Capitalism: The Unknown Ideal (New York: New American Library, 1966).
32. Harvey S. Singer, MD, “Motor Stereotypes,” Seminars in Pediatric Neurology, Johns Hopkins University 16 (2009): 77–81.
33. James Wallace and Jim Erickson, Hard Drive: Bill Gates and the Making of the Microsoft Empire (New York: John Wiley & Sons, 1992).
34. K. Anders Ericsson, Ralf Th. Krampe, and Clemens Tesch-Romer, “The Role of Deliberate Practice in the Acquisition of Expert Performance,” Psychological Review, 1993.
35. Wallace and Erickson, Hard Drive.
36. Ibid.
37. Ibid.
38. Ibid.
39. Ibid.
40. Ibid.
41. H. Edward Roberts and William Yates, “Altair 8800 Minicomputer Part I,” Popular Electronics, January 1975, 33.
42. Wallace and Erickson, Hard Drive.
43. Ibid.
44. Bill Gates, “An Open Letter to Hobbyists,” Homebrew Computer Club Newsletter, January 31, 1976.
45. Wallace and Erickson, Hard Drive.
46. John Markoff and Paul Freiberger, “In Focus—Making the Most of Opportunities at Microsoft,” InfoWorld, August 29, 1983.
47. Maggie Cole, “Gary Kildall and the Digital Research Success Story—The Man Behind CP/M,” InfoWorld, May 25, 1981.
48. Wallace and Erickson, Hard Drive.
49. Ibid.
50. Ibid.
51. Jeffrey R. Yost, “An Interview with Seymour Rubinstein,” Oral History 391, Charles Babbage Institute, May 7, 2004.
52. Stan J. Liebowitz and Stephen E. Margolis, Winners, Losers, and Microsoft: Competition and Antitrust in High Technology (Independent Institute, 1999).
53. James Wallace and Jim Erickson, “Computer Kid Grows into a Formidable Foe,” Seattle Post-Intelligencer, May 9, 1991.
54. Wallace and Erickson, Hard Drive.
55. Slater, Microsoft Rebooted.
56. Ibid.
57. Ibid.
58. Ibid.
59. Ibid.
60. Alan Greenspan, “Antitrust,” in Capitalism, the Unknown Ideal (New York: New American Library, 1966).
61. Michael A. Cusumano and David B. Yoffie, Competing on Internet Time: Lessons from Netscape and Its Battle with Microsoft (New York: Free Press, 1998).
62. Slater, Microsoft Rebooted.
63. Steve Lohr and Joel Brinkley, “Microsoft Defiant in First Response to Antitrust Case,” New York Times, October 21, 1998.
64. Rothstein, “Wronging Microsoft.”
65. Ken Auletta, “Final Offer—What Kept Microsoft from Settling Its Case?” New Yorker, January 15, 2001.
66. Bill Gates, deposition testimony, August 27, 1998.
67. Auletta, “Final Offer.”
68. Ibid.
69. Cohen, “Microsoft Enjoys Monopoly Power.”
70. Slater, Microsoft Rebooted.
71. Ibid., 121.
Chapter 6 The Central Planner
1. Michael R. Crittenden, “A Roof over Every Head: Longtime Advocate of Affordable Housing Brings His Passion to Helm of House Financial Services,” CQ Weekly, December 11, 2006, 3262, www.cq.com.
2. Stuart E. Weisberg, Barney Frank: The Story of America’s Only Left-Handed, Gay, Jewish Congressman (Amherst, MA: University of Massachusetts Press, 2009).
3. Town hall meeting, Dartmouth, MA, August 18, 2009.
4. “A Way with Words,” New York Times, May 13, 2008.
5. Weisberg, Barney Frank.
6. Speech at Harvard University Kennedy School of Government, April 7, 2009.
7. Weisberg, Barney Frank.
8. Ibid.
9. Ibid.
10. Ibid.
11. Ibid.
12. Ibid.
13. Jeffrey Toobin, “Barney’s Great Adventure: The Most Outspoken Man in the House Gets Some Real Power,” New Yorker, January 12, 2009.
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.