“In my career, the Fed has a 100% error rate in predicting and reacting to important economic turns… because it is trying to arbitrarily set the single most important price of the economy – the price of money… setting wage and price controls from the time of Diocletian to Nixon, has proven in every case a disaster for economies and the people entrapped by them.”
Former BB&T CEO John Allison retired from finance in 2010 after building, brick-by-brick, one of the best run banks in American history. As author George Gilder observes in his excellent book, “Knowledge and Power,” Allison steered BB&T through the entire sub-prime crisis without suffering a single quarterly loss. Not one penny. During his almost two-decades at the helm, BB&T blossomed from a small, relatively inconsequential local bank to a $152 billion regional powerhouse successfully operating in 11 southern states and the District of Columbia. Simply put, John Allison knows how to lead.
“[BB&T] had really strong presidents,” according to Allison, redirecting credit to his underlings. “They had a much higher level of authority than our competitors… they were held responsible – they owned the process.”
Now shift your focus from John Allison, visionary business leader, to the Fed Crony Boys over in the “Land of Mediocrity.”
Click here to continue reading Hedgeye CEO Keith McCullough's latest op-ed on Forbes.