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Capitalism Without Failure: Joseph Stiglitz: Paulson, Bernanke and Geithner Adopted the Bankers’ Rescue Plan – Which Saved the Bankers

SUNDAY, OCTOBER 28, 2012

Joseph Stiglitz: Paulson, Bernanke and Geithner Adopted the Bankers’ Rescue Plan – Which Saved the Bankers

Joseph Stiglitz, one of the most distinguished economists in the USA, is unique in his profession. He is uncompromised, principled, and vocal about the terrible policy decisions following the crisis.  A few notes:

  • There is no excuse in terms of how the rescue was handled.  Whomever designed it was either in the pocket of the banks or incompetent.
  • Even though Volcker had tamed inflation and was a very effective Fed Chairman, Reagan did not reappoint him. Reagan was looking for an ideologue. And he found one.
  • Fannie & Freddie were latecomers to the problems and were a sideshow. It was the private banks that brought it on.

Audio:

Capitalism Without Failure

21st Century Economics: 1. Rampant fraud and reckless mismanagement in the financial sector, 2. Public bailouts of the worst actors in the financial sector, 3. Private debt and liability imposed on taxpayers, 4. Monetary policy aimed at recapitalizing insolvent and recidivist banks, 5. Promotion of business leaders and policy-makers who are chronically compromised, 6. Conglomeration of Systemically Dangerous Institutions into a more empowered menace.

Capitalism Without Failure: Joseph Stiglitz: Paulson, Bernanke and Geithner Adopted the Bankers’ Rescue Plan – Which Saved the Bankers.

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