Nobel Laureate Stiglitz Says Banking Problems Are Now Bigger Than Pre-Lehman

September 13, 2009 by · Leave a Comment
Filed under: Opinion 

Mr. Stiglitz makes a very good point that we have not done anything of significance in the form of bank regulation to prevent this from happening again.   He is also right that the banks have started pushing back.   It is quite obvious when you look at the facts to date that at bare minimum, some crimes have taken place and the people who are complacent need to held to account.  Through these investigations, we will learn how these frauds took place and that will give us information needed to make prudent laws.

To be clear, when I say fraud I am talking about the number of financial instruments that were sold when they were of dubious qualities.  This fraud will only last so long until the common person gets fed up and start spreading information around and starts calling their representatives to hold them to account on why we have given the banking system $23 trillion dollars of taxpayer money and not even committee to investigate what really happened.

Bloomberg, Paris – Joseph Stiglitz, the Nobel Prize- winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.

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Nobel Laureate Joeseph Stiglitz Says Ties to Wall Street Doom Bank Rescue

April 20, 2009 by · Leave a Comment
Filed under: Opinion 

He is correct on this point, the bailout has been targeted to Wall Street on the assumption that if we give them good money and purchase their bad assets off their balance-sheet, it will get them to start lending in the middle of a soft-depression.  Not likely, in reality they are holding on to the cash until this passes then they will lend and make acquisitions are bargain basement prices which in the end will give them more wealth and power.    My question is how long it will take for people to wake-up and see this situation for what it is and start holding our elected representatives accountable to the biggest corporate subsidy in the history of modern civilization???????  Get on the phone and let your opinion be heard and vote accordingly.  That is the only way they will know that we are serious and paying attention.

News (Bloomberg):

The Obama administration’s bank- rescue efforts will probably fail because the programs have been designed to help Wall Street rather than create a viable financial system, Nobel Prize-winning economist Joseph Stiglitz said.

“All the ingredients they have so far are weak, and there are several missing ingredients,” Stiglitz said in an interview yesterday. The people who designed the plans are “either in the pocket of the banks or they’re incompetent.”

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