June 11, 2009

Stiglitz on Breaking the Bank's Grip

Former World Bank Chief Economist and Nobel Prize winner Joseph Stiglitz is trying to rally public to check the power of the banks. Stiglitz is featured in Episode 14 of GDAE Podcast if you want to hear him in his own words.

Here are some of Joseph Stiglitz's words:

It has long been recognized that the US banks that are too big to fail are also too big to be managed.

The rigged system:

If they take big bets and win, they walk away with the proceeds, if they fail, the Government picks up the tab.

It's not the Banks that are being bailed out:

The Obama Administration has succumbed to political pressure and scare-mongering by the big banks and, as a result, has confused bailing out the bankers and their shareholders with bailing out the banks.

Justice and Anger:

Rewriting the rules of the market economy — in a way that has benefited those that have caused so much pain to the entire global economy — is worse than financially costly. Most Americans view it as grossly unjust, especially after they saw the banks divert the billions intended to enable them to revive lending, to payments of outsized bonuses and dividends

A Prediction:

This ersatz capitalism, where losses are socialized and profits privatized, is doomed to failure.

Sources:

Business, Day, Break the banks, for the good of the people, Joseph Stiglitz, June 10, 2009.

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3 comments:

libhom said...

I'm not sure the rules of the market economy are really being rewritten. When too much wealth is concentrated among too few, the state tends to become their pawn.

GDAEman said...

Libhom, The state has definitely been captured by the plutocrats.

I've not forgotten our exchange on left populists. I need to post on that.

GDAEman

123 123 said...

Interesting story as for me. I'd like to read something more about this theme. Thnx for giving that info.
Joan Stepsen
Wise geek