Now, here's the crucial question: Is Stiglitz fat? Because if he is, then we can disregard anything he says, just like Michael Moore...
Stiglitz: “This amounts to robbery of the American people”
From Reuters:The U.S. government plan to rid banks of toxic assets will rob American taxpayers by exposing them to too much risk and is unlikely to work as long as the economy remains weak, Nobel Prize-winning economist Joseph Stiglitz said on Tuesday…
U.S. Treasury Secretary Timothy Geithner’s plan to wipe up to US$1 trillion in bad debt off banks’ balance sheets, unveiled on Monday, offered “perverse incentives”, Stiglitz said.
The U.S. government is basically using the taxpayer to guarantee against downside risk on the value of these assets, while giving the upside, or potential profits, to private investors, he said. “Quite frankly, this amounts to robbery of the American people. I don’t think it’s going to work because I think there’ll be a lot of anger about putting the losses so much on the shoulder of the American taxpayer.”
Thursday, March 26, 2009
Stiglitz: They're Robbing US Blind
From the invaluable but not quite ubiquitous Ken Silverstein, Harper's DC Bureau chief and blogger at Washington Babylon, today: