Thursday, December 11, 2008
Joseph Stiglitz on the Bad Decisions that Led to the Financial Meltdown
Joseph Stiglitz is a Nobel prize-winning economist. In this article, he talks about five bad decisions that led to the 2008 financial crisis. One was replacing Volker with Greenspan as Federal Reserve Chairman, one was the deregulation that happened when Glass-Steagall was repealed, another was the Bush tax cuts, one was an accounting system that had incentives for fraud, and the last was the particular bailout package that was passed and how it has been implemented. It is a little worrisome that Robert Rubin and Larry Summers were opposed to regulation of derivatives, and they are a major part of Obama's economic team. Stiglitz provides good background on each of the five decisions.
Posted by Mary Amanda Axford at 10:12 AM