From his WaPo column:
I asked [John] Allison recently about mortgage bankers who made lousy loans that they knew would go bad, and investment bankers who knowingly packaged them into securities, and ratings agencies that gave them their seal of approval. His explanation was that once a misguided government provided the wrong incentives and opportunities, such profit-maximizing behavior was to be expected in a market system — a system that eventually would have punished those who were misguided or unethical if the government hadn’t foolishly bailed them out.
Note the Gordon Gekko-like logic here: Because pursuit of self-interest is the essential ingredient in a market system, it somehow follows that individuals and firms are free to act as greedily and selfishly as they can within the law, absolved from any moral obligations. And it’s not just in the movies. The same amorality was on display at those Senate hearings in 2010 where Fabrice “Fabulous Fab” Tourre and the team from Goldman Sachs tried to explain to incredulous lawmakers why it was perfectly reasonable to peddle securities to clients that they had deliberately constructed to default.
More self-imposed stupidity? Or does he really believe libertarians believe that?
About the ideological Turing test.