Joseph Stiglitz: Bad Bank is 'Cash for Trash'

Complete video at: http://fora.tv/2009/01/31/Rebooting_the_Global_Economy

Joseph Stiglitz criticizes the creation of a "bad bank" to deal with untradeable assets left over from the U.S. financial crisis, and compares the bad bank solution to garbage collection. "You shouldn't chase good money after bad money," says Stiglitz.

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The assumption that Europe, Japan and the United States could fend off recession at home by increasing exports to BRIC economies has been proved wrong along with the grander notion about the decoupling of emerging markets.

As global trade continues to decrease along with commodity prices, what should be done differently by governments and industry to jump-start global economic growth?

Joseph Stiglitz was chief economist at the World Bank until January 2000. Before that he was the chairman of President Clinton's Council of Economic Advisers. He was awarded the Nobel Prize in economics in 2001. He is currently a finance and economics professor at Columbia University. He is the author of Globalization and Its Discontents and The Roaring Nineties.

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[Limeisback2012]

The System is completely trashed.

[FWTRTW]

Thanks FattKidd for your comments and your realistic perspective.If one is aware and allows the powers of critical thinking to be used it becomes quite clear that the entire state of world affairs is based upon an obvious agenda,and it's not new.The current Depression has been engineered as was the last,and unless we stop participating in THEIR system,things will continue to worsen.

[909jtscofield]

Stiglitz is, as usual spot on. The more time goes by, the more evident this becomes.

[sysopkc]

@smartfan2 Its nonsense, total fluff. Its truth mixed with total nonsense as its not fiscally realistic.

[sysopkc]

If your so incensed about this, WHY are you arguing for policies that contribute and sustain the very problem your attacking!??! You CANT have it both ways! Stiglitz talks out of both sides of his mouth. Hahaha hard to manage? Try impossible to pay...its called FEDERAL INSOLVENCY.... Yeah security in SSI paid in what? The currency wont be worth the synthetic cloth its printed on.

[sysopkc]

I dislike Stiglitz because he plays politics far too often, and once again protects Govt. lines while attacking the finanical institutions. Its angering because he admits the failure, highlights the stupidity. Then blames a victim! Comon, dont be an asshole. Credit supply, yeah......and how are you going to lend it? At gunpoint? AGGGH these people.....

[clat1]

@DifferentRussia

Collateralized debt obligations

[AntiPsychopath]

AIG has just looted all the peoples money, and the people are now paying for AIGs bonuses and luxuries....instead of making sure that all the CEOs went to jail and had their properties liquidated, they socialize the failure so that simple people that minded their manners all their lives pay for it.....government is hijacked and owend

[davfritz]

MORONS! Time for a millitary coo!

[mdfaithful]

It's true and it is by the way, one way or another great show in the movie 2012 ...

America wake up! Evil Empire is you! And you will answer for it if I do nothing with yourself and with your crazy political elite! You are under kolpkom a Judeo-masons, and they control the U.S. Zombie Land