Joseph Stiglitz - Bail Out Homeowners, Not Banks

Complete video at: http://fora.tv/2008/11/14/The_Financial_Crisis_US_Economy_and_New_Administration

Economist Joseph Stiglitz argues that the U.S. government should address the mortgage crisis by providing aid directly to homeowners, rather than to the financial institutions holding their mortgages.

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James K. Galbraith discusses the history leading up to the recent economic collapse, and suggests how the American government can get back on its feet.

Then, a panel of leading experts headed by Joseph Stiglitz tackles the issue, and discuss the challenges facing the Obama administration in managing the financial crisis.

They argue that its implications run well beyond the US economy to concerns about international security.

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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• mortgages
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• lending
• homes
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[astro7894]

Stop bailing out anyone! If someone can't afford their house then they should lose it and get a smaller one, just like the prudent have already done. Bailing people out with taxpayer money just steals from the prudent and gives to the imprudent and creates a longer term moral hazard which would push up house prices to even higher unaffordable levels.

[baigandine]

@madcowhunter Homes they can't afford? Unlike the situation in the United States right? In times of prosperity, people don't price the possibility of the economic APOCALYPSE into their assesment of whether they can afford a home. If they did that we'd all live in shanty towns.

And of course they'd have to bear the cost of that higher mortgage while they were still working, giving them less money for everything else.

And homelessness due to sudden economic apocalypse is the greater evil.

[madcowhunter]

"Nobody will say I want to be fired for you (governement) to pick up my morgage".

Perhaps no but people will take morgages for homes they can't afford when they lose job will pay for them. That is how governent will promote more risky behavior.

I don't know but this so called economist always picks up arguments that suit his ideas while when other opposing arguments are so close to his reasoning he somehow ommits them. I don't think he is an honest person.

[louiethegreater]

@jimberkt If Milt Friedman received the Nobel Prize, than Joseph Stiglitz should recieve the prize with a gold cluster.

[jimberkt]

Why dont we just buy everyone in the world a home? Wouldnt we all be better off? Why doesnt the government just print out a million dollars for everyone on the planet then we will all be millionaires?

-I have actually had people ask me this so presumably there are huge numbers of people in the world who dont even understand basic things about how money works which is presumably why autistic twits like this guy get awarded the nobel prize.

[rainzoro]

@estorpai "read books and be a producer... rather consumer of information" i like that