Joseph Stiglitz joins fellow Nobel-winner Paul Krugman in calling out the Obama administration. Both agree that the Obama plan will not work; Stiglitz is to be admired for stating in plain and unadorned language exactly why it won’t work.
April 17 (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.”