Joseph Stiglitz On Market Fundamentalism

I think market fundamentalism is dead. I've marked that this September is to market fundamentalism what the fall of the Berlin Wall was to Communism.
But America has a system that I would describe over the last 8 years as a corporatism -- corporate welfarism if you want to call it -- under the guise of free market economics. And it's that mixture that was fundamentally flawed, was incoherent and intellectually bankrupt from the beginning. It has been shown not to work. There are going to be some serious consequences of that.

10 or 15 years ago the IMF went into East Asia and talked about lack of transparency, the need for good regulation and corporate governance. If they did that today everybody would laugh. So I think their credibility is zero [Absolutely]. It's absurd!

If I were the Chief Economist of the World Bank and this was a third-world banana republic I would say no loans to this country. $700 billion? With no oversight or judicial review? That's amazing. But fortunately Congress did stop it [Amazing].


You compare what the British got when they put equity injections.....well theirs at least was a partial nationalization...Paulson said oh no, pour the money out as we pour it in.

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