Economist Galbraith: Bailed-Out Banks Should Be Declared Insolvent 2/10/09 Democracy Now 3 of 3

With estimates of the cost of addressing the financial crisis exceeding $9.7 trillion, we speak with economist and University of Texas professor James Galbraith, author of The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too. Galbraith says rather than pouring billions into propping up troubled giant banks, the government should declare them insolvent. [includes rush transcript]

http://www.democracynow.org/2009/2/10/economist_james_galbraith_bailed_out_banks

Category:

News & Politics

[Chrisi313]

@akayami77 You're not an economist either, thank god

[akayami77]

Galbraith is not an economist. He is a raving commie... Commies are not economists. They are bullies. Milton Friedman was an economist.

[kotash2]

the reason why MBS were issued was b/c of government laws and regulations that conspired to allow and foster and ENCOURAGE their issuance. The regulations were specifically the problem. IF there were NO regulations then these securitues would not have been issued b/c interest rates would have risen choking off the housing bubble