Wednesday, April 1, 2009

Nobel economist Stiglitz denounces bank bailout

"THE Obama administration’s $500 billion or more proposal to deal with America’s ailing banks has been described by some in the financial markets as a win-win-win proposal. Actually, it is a win-win-lose proposal: the banks win, investors win — and taxpayers lose.

Treasury hopes to get us out of the mess by replicating the flawed system that the private sector used to bring the world crashing down, with a proposal marked by overleveraging in the public sector, excessive complexity, poor incentives and a lack of transparency."

http://www.nytimes.com/2009/04/01/opinion/01stiglitz.html?_r=1&ref=opinion

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