Joseph Stiglitz and Jeff Madrick @ #occupywallstreet Open Economic Forum

[iLoveSmellyCunts]

Stiglitz is a Nobel Prize winner in Economics, but his ubiquitousness on TV is taking some if the mystique away from the Prize.

[beancube2010]

I guess if Mr. Joseph Stiglitz can do this every morning, he'll have stronger health and happier mood everyday. That is pretty much about economy: people, health and happiness instead of troops, guns and power.

[farahsaraday]

lovin penn badgley in the background

[DaHonestAbe]

I understand the human/peoples microphone. But it can get rough after a while.

[eltuboderobert7]

message ok. but repeating like parrots?

[kakapoopoodoodoo]

the chanting is ridiculous 

[ericfeinberg28]

third nobel?

[mannatuu]

“There’s a system where we socialize losses and privatize gains,” he continued. “That’s not capitalism, that’s not a market economy, that’s a distorted economy and if we continue with that we won’t succeed in growing, and we won’t succeed in creating a just society.”

Absolute jibberish . Capitalism is a class system , and reflects the interests of those it serves . To say capitalism is something other , and to imply it can establish growth , is to misunderstand its very dynamic

[willC801]

why are they repeating him

[justjanify]

@willC801 its called the peoples mic sothatothers at theback can hear,they arenot allowed to use megaphones

[TAMYCRON]

Why is ROBERT JOHNSON there? Hmmmmm....

[RawFoodKevin]

@vidas2010 Yeah, why didn't they just go down to the professionally trained synchronized shouter store?

[rabideyemovement]

I was actually interested in watching this video, but don't want to hear these idiots repeating everything he says.

[nnnnnnnnnnnnnn]

@rabideyemovement transcript is buried in the comments somewhere....

[dink65]

@rabideyemovement - Agreed. I wanted to yell STFU! Incredibly irritating. I stopped listening after 45 seconds.

[NioushaXD]

@rabideyemovement these "idiots" have been forbidden to have any sort voice magnifying device by NYC police. The only way for everyone to hear a speeches is to use this method: the speaker says a few line, and the people repeat it so everyone can her. Sorry the only method the protesters have to communicate is so annoying to you.

[rabideyemovement]

@NioushaXD I'm not.

[zazzeitgeber]

@rabideyemovement democracy's slow, sorry bud. play nice. @nnnnnnnnnnnnnn: thanks for posting the transcript!

[rictorn]

@rabideyemovement its just funny, monty python spike milligan lewis carol stylie surriealism, stiglits is loverly too,

[coolstorybro1996]

i love that penn badgley is in the crowd <3

[itruque53]

What about the insurance companies, no one says anything about it or about them while they grow bigger and stronger

[RawFoodKevin]

@itruque53 You found a need, that puts you in the best position to do something about it, which is what leaderless leadership is all about.

[riderstein]

Doesn't anybody recognize the celebrity actor in the crowd?

[JG129]

@riderstein No ? Who is it and where in the crowd ?

[riderstein]

@JG129 Think Gossip Girl and Easy A. Come on, I don't want it to be too easy.

[JG129]

@riderstein Haven't seen either hahaha Is it the guy who is wear a hoody and has an umbrella underneath him and the beginning of the video ?? Because he looks pretty familiar. I feel like a dick talking about celebrities on a pretty serious video lol

[riderstein]

@JG129 Ding Ding Ding you found the celebrity.

[ylwus2008dragon]

Great Job, Stiglitz and Madrick!" As a scholar, I am so happy to see you give a special lecture to students on the street. It is worth more than billion dollar for them.

[MrArchuletad]

Creepy....reminds me of when I was in kindergarten....

[TheVodKanockers]

We all know lessons. What should we do?

[tangoturb]

Stiglitz: You are not alone!

We have too many regulations stopping democracy, and not enough regulations stopping Wall Street from misbehaving.

You are right to be indignant. The fact is the system is not working right.

[tangoturb]

Stiglitz: You are not alone!

We have too many regulations stopping democracy, and not enough regulations stopping Wall Street from misbehaving.

You are right to be indignant. The fact is the system is not working right.

[fherrick1]

After watching this I feel so much hope for the future!

[kuninokunino]

A great moment in American history -- and proof that students do, in fact, pay attention. Why has it taken so long for this to follow the engineered 2007-8 economic collapse?

[dudiusmaximus]

speaker: "Questions?"

crowd: "QUESTIONS?!"

love

[Kibelle]

Cheers for people who continue to fight for their ideals and values. Keep on spreading your messages. :-)

[Mandroid666]

hey Anonymous... if you're out there.... could you maybe embed this video on fox news' front page? that would be great, thanks.

[Labattfartoui]

I love seeing actual democracy in action.  I hope no party co-opts this movement and instead this movement brings a new order to our society, one that loves justice and values every person, not just those who create "value", as defined by people in power.

[credit70000euros]

FANS-SPORTAL COM , football supporters network give full support this protest!

[911reset]

look at the left gatekeepers acting like they don't know about bilderberg or 9/11 being an inside job. you want to know the cause of the bailout? 9/11, bitches. nowhere to run, nowhere to hide. 9/11 truth ends all wars and ends the crisis. take that, left gatekeepers.

[radscorpion8]

@911reset We're trying to deal with real problems here, post your 9/11 inside job nonsense somewhere else

[911reset]

@radscorpion8

9/11 ends the crisis, sheeple. but you already know that. lol.

[ThePeoplesGameKPFK]

The more bad mortgages went on the predatory lending got worse and the powers that be – and, in particular, let me name names – Alan Greenspan, the chairman of the Federal Reserve, was able to retire in glory, is there something wrong with this picture. There sure is. And there are a lot of other areas we can discuss.

[ThePeoplesGameKPFK]

Part Nine:

The more bad mortgages went on the predatory lending got worse and the powers that be – and, in particular, let me name names – Alan Greenspan, the chairman of the Federal Reserve, was able to retire in glory, is there something wrong with this picture. There sure is. And there are a lot of other areas we can discuss.

[ThePeoplesGameKPFK]

Part Eight:

Jeff Madrick

Just to keep going on this, the FBI (???) actually told the powers that be that there was an epidemic of fraud in 2004 in the mortgage market. Washington and the Federal Reserve had the power to do something about that. They did not.

[ThePeoplesGameKPFK]

Joe Stiglitz

One of the things the banks did was to prey on the poorest Americans. Predatory lending. We knew about it. There were some people who tried to stop it. But Wall Street used their political power to stop those who would stop them.

[ThePeoplesGameKPFK]

Part Six:

You make money by taking risks, but nobody takes it away from you when the strategies don’t work and you lose lots of money – that was one of the core problems with Wall Street. Could Washington have done something about that? Yes. There were other problems. I’ve got to throw it to Joe to talk about other problems.

[ThePeoplesGameKPFK]

Part Five:

Jeff Madrick

To make it a little more clear, how Wall Street was allowed to take all that risk, the bankers were able to take home their bonuses every year, by developing risky strategies that one day had to go bad. They knew however, they would take out their money before most of those investments went bad. Economists call this asymmetric incentives.

[ThePeoplesGameKPFK]

Part Four:

We are barring the cost of their misdeeds – there’s a system where we social the losses and we privatize gain. That’s not capitalism, that’s not a market economy – that’s a distorted economy and if we continue with that we won’t succeed in growing and we won’t succeed in creating a just economy.

[ThePeoplesGameKPFK]

Part Three:

The fact is the system is not working right. It is not right that we have so many people without jobs when we have so many needs that we have to fulfill. It is not right that we are throwing people out of their houses when we have so many homeless people. Our financial markets have an important role to play – they are supposed to allocate capital, manage risk; but they misallocated capital and they created risk.

[ThePeoplesGameKPFK]

Part Two:

We have too many regulations stopping democracy and not enough regulations stopping Wall Street from misbehaving. You should have the right to walk down the street peacefully and demonstrate your views; and not be arrested and be sprayed with pepper spray.

Now I want to talk a little bit about what I said in Spain about (the debt and) the banks. The protesters there are called the indignados – and I said you are right to be indignant.

[ThePeoplesGameKPFK]

Here's a full transcript: Part One:

Joseph Stiglitz

Before Talking about economics, I want to say something about Democracy. In July I was in Spain, talking to the Indignados there, the protestors. There I could use a bullhorn – I didn’t have to go through this echo chamber. I realize the pedagogy of having to repeat what I say is very valuable, but it takes the whole process much longer. The fact that you are not allowed to use a megaphone on Sunday is outrageous.

[WuTubeish]

Yes educate these protester so they have a direction, principles and ideas behind there message. I feel as if most are just Socialist Hippies who voted for Obama and got exactly what they deserved. The big Banks/Business do this shit because the government allows them to do so, Wake up! Its the Federal Reserve, Congress, POTUS and SCOTUS!

[geegeevindaloo]

Building a community voice, inspiring!

[twolegsnotail]

It's clear that Stiglitz and Madrick are sincerely consternated with the restrictions imposed on public protest in NYC. I hope Stiglitz will go on to address the matter either in print or in a public forum. If you haven't yet seen one, do a video search for one of Stiglitz's fine public addresses on the financial crisis - the best ones are over an hour in length. WHY Summers, Gensler, Geithner & Co. AND NOT Stiglitz, Volker, Brooksley Born, Elizabeth Warren, and Simon Johnson???

[KelleyBeld]

@twolegsnotail here here!!!

[jamkabi]

This is the stupidest shit I have ever seen In my life.

[xknowledgeisfreex]

thanks for the transcript.

[zuperbeef]

full transcript on columbia university's undergraduate blog: search "bwog stiglitz speaks at occupy wall st" in google!

[TylerThrashPeace]

I would totally be there right now but im unemployed and have no money. And i live in minnesota. If anyone is around that area or simply near it, GO OCCUPY WALL STREET! Get your voice heard!

[workingclasssociety]

he used to work for the world bank, I don't follow. Don't you think is in march step with all the other ivy league economist?

[arcas17]

I took the time to write a transcript of this for anyone with difficulties understanding it. Though I am confident of its accuracy, I disclaim any responsibility for any errors it contains.

(1)

Stiglitz (0:00):

Well, before talking about economics, I want to say something about democracy. In July, I was in Spain talking to the Indignados there -- the protestors. There, I could use the bullhorn; I didn't have to go through this echo chamber.

[arcas17]

@arcas17

(2)

I realize the pedagogy of having to repeat what I have to say is very valuable, but it takes the whole protest much longer. The fact that you are not allowed to use a megaphone on a Sunday is outrageous. We have too many regulations stopping democracy, and not enough regulations stopping Wall Street from misbehaving. You should have the right to walk down the street peacefully and demonstrate your views, and not being arrested and not being sprayed with pepper spray.

[arcas17]

@arcas17

(3)

So now I want to talk a little bit about what I said in Spain, and then about the banks. The protest there is called "Indignados" and I said "you were right to be indignant." The fact is the system is not working right. It is not right that we have so many people without jobs when we have so many needs that we have to fulfill. It's not right that we are throwing people out of their houses when we have so many homeless people.

[arcas17]

@arcas17

(4)

Our financial markets have an important role to play -- they're supposed to allocate capital, manage risk -- but they've misallocated capital, and they've created risk. We are bearing the cost of their misdeeds. There's a system where we've socialized losses and privatized gains. That's not capitalism; that's not a market economy; that's a distorted economy, and if we continue in that, we won't succeed in growing, and we won't succeed in creating a just society.

[arcas17]

@arcas17

(5)

Madrick (4:40):

To make it all the more clear how Wall Street was allowed to take all that risk, the bankers were able to take home their bonuses every year by developing risky strategies that one day, had to go bad. They knew, however, they would take out their money before most of those investments went bad.

[arcas17]

@arcas17

(7)

We knew about it; there were some people who tried to stop it, but Wall Street used their political power to stop those who would stop them.

Madrick (7:15):

What's to stop Wall Street from continuing to use their political power just to keep going on this? The FBI actually told the powers that be that there was an epidemic of fraud. In 2004, in the mortgage market, Washington and the Federal Reserve had the power to do something about that. They did not.

[arcas17]

@arcas17

(8)

More bad mortgages went on, the predatory lending got worse, and the powers that be, in particular -- and let me name names -- Alan Greenspan, the chairman of the Federal Reserve, was able to retire in glory. Is there something wrong with this picture? There sure is, and there are a lot of other areas we can discuss.

Stiglitz (8:55):

[arcas17]

@arcas17

(9)

Two more things: after the bubble broke, they continued in their way of disobeying the law, in a sense, throwing people out of their houses -- even, in some cases, when they didn't owe money. The balance of rights has been distorted. We bailed out the banks with an understanding that there would be a restoration of lending. All there was was a restoration of bonuses.

[arcas17]

@arcas17

(10)

Unless we deal with the anti-competitive practices, with the reckless lending and speculative behavior, [...] unless we restore finance to the function which it should serve, we won't have a robust economy.

Madrick (10:45):

One last point and then questions: there have been few civil suits by the federal government -- even when they made them, they settled. There may be some hope somebody's lighting a fire under prosecutors and attorneys general.

[arcas17]

@arcas17

(11)

Not all on Wall Street broke the law, but it is hard to believe that some didn't, and it's important, so that all of us can understand, that not all that happened was simply well-meaning gigantic errors. By prosecuting where there was serious unethical practices, we may provide another deterrent. Unethical practices were a major contributor, in my view, to the crisis have, and the difficult future we face.

(END)

[arcas17]

@arcas17

Apologies for the comment space this took up. I just think these messages need to be heard enough to merit it.

[nnnnnnnnnnnnnn]

@arcas17 Thanks for transcribing! I added it to the transcript above.

[nnnnnnnnnnnnnn]

@nnnnnnnnnnnnnn shoot, character limit on that box...

[chomusik80]

@arcas17 Not "communists"-- Economists call this "asymmetric incentives".

[arcas17]

@chomusik80

Thank you for noticing this error. I went ahead and fixed it since I figure the comments will be difficult to read anyways. (Damn 500 char comment limit; users should be able to set their own character limits for comments on their videos to facilitate the type of discussion they want to have.)

[arcas17]

@arcas17

(6)

Economists call this "asymmetric incentives": you make money by taking risk, but nobody takes it away from you when those strategies don't work and lose lots of money. That was one of the core problems with Wall Street. Could Washington have done something about that? Yes. There were other problems; I got to throw it to Joe to talk about other problems.

Stiglitz (6:30):

So, one of the things the banks did was to prey on the poorest Americans -- predatory lending.

[aliasooze]

Can't a lawyer get them a mic? If this was a politician and they had an audience of 3 they would spend a million dollars to be heard. Fly news people in for it. Is there a law that they can't have a mic in the park? It's F-ing stupid...they are just nit picking. Isn't it their Constitutional right to be heard and to have political rallys?

[cybersphere]

echoing the comments has gone from being cute to being annoying. doesn't anyone have a fucking mike?

[inuyashaxx]

@cybersphere They're not allowed to have mics or megaphones. It's not meant to be "cute", it's to get information to people farther back that can't hear it.

[busywave]

@inuyashaxx why are they not allowed megaphones or mics? Does it have to do with permits? I also don't get the laughter and snickering that's going on. These are serious problems being addressed.

[cocomaan]

@busywave The protesters aren't allowed to use megaphones. They instead have to rely on technology as old as human speech itself.

[inuyashaxx]

@busywave Yes, it has to do with permits, which OWS doesn't have, because there are no permits for occupation. The laughter is because Joseph Stiglitz is really excited and is using too many words for the people's mic to remember and repeat. People aren't sure if they're repeating it right and it's kinda funny. The OWS people are trying to keep their spirits up and are doing a damn good job of it.

[bigslowfatspeed]

And the DOJ goes after whistleblowers, not Wall Street. And the Obama Admin tries to pressure all 50 state attorney generals to reach one big foreclosure settlement with big banks to effectively sweep it all under the rug just like we swept the worldwide torture regime under the rug.

Both parties are at fault: they both exist to serve the rich and powerful, the rest of us be damned.

[TheDynamicDriveler]

Bring back the guillotine for the bankers and traders that caused this collapse.

[Omnicronimous]

The distinguished professor's position summarized, "I'm for nationalized competition".

That makes sooooo much sense. *sarcasm nob turned all the way up* I can totally understand why a bunch of brainwashed sheep would play mimic with him and his "journalist" buddy.

[Ex0dus111]

@Omnicronimous Great Summary! (turns off sarcasm)

[Omnicronimous]

I found the socialists at play.

[fundamental1515]

Stiglitz is both huge inspiration and disincentive... I mean, he is a great man, one of the greatest minds of this time with such a feeling for society...his books are amazing...and yet, not even him, with such 'power' as one of the most recognized economist in the world, nobel laureate, professor etc., he still can't do anything to influence the change in leading global economy....sad.

I'm glad he joined the protests though, and hope that policy makers will finally start to listen to him!!!

[DSCcolours]

I love how Stiglitz is so impassioned and doesn't get how the speakers mic works until the end. Go Stiglitz!

[afaultytoaster]

kill all liberals, smash the state

[maleki9]

Can't wait for Krugman to do this!

[Zocaro1917]

Global demostrations October 15th 2011

We are 99% human kind, and united for global change.

Thank you from Spain!

Gracias amigos americanos!!!

[EllinMK]

@Zocaro1917 We are allways on the line...greetings from Greece.

[kraschable]

Thank you from Germany. There is so much knowledge and so little power.

[Benjefwil]

Awesome, one of my favorite economists. Great of him to support this. Hopefully more economists show up so people really get an idea of how absurd wall street has gotten and how legitimize these protests are.