I have been meaning to post this since Thursday morning : An interview with Joseph Stiglitz, the Columbia Professor who is a Nobel Prize-winning economist, with his overview of the economy.
Stiglitz recent books include Globalization and Its Discontents (2003) and Making Globalization Work (2006).
The professor pulls no punches — about the economy, President Bush, and Fed Chair Bernanke.
Stiglitz on the Economy
Thurs. Apr. 10 2008 | 7:00 DT[08:07]
Joseph E. Stiglitz Home Page
The world’s central banks have accumulated $6.4 trillion resulting from the US consumption binge. That money will eventually go somewhere. It would be better if it went into US goods and services. One way to have that happen is a massive dollar depreciation. Everyone is trying to think up another way.
Smart dude. Clearly not a member of the current administration. Unfortunately.
Stiglitz left off a bank balance sheet that is also in a precarious situation – the Federal Reserve Bank.
There are already ideas being floated to bolster the Fed’s balance sheet: have the Treasury borrow more than it needs and create a Fed “slush fund”, or allow the Fed to issue its own debt.
For some odd reason, I get a little nervous when the Fed starts needing a “slush fund” or a Fed Super SIV to manage the investment-grade paper for which it is trading.
Maybe being “sucker of last resort” in a Ponzi scheme isn’t such a good idea.
As per lurker’s thought expounded upon, relative to the current administration focus:
“The demagogue is one who preaches doctrines he knows to be untrue to men he knows to be idiots.”
Not to mention their ‘we have the answer’ protocol:
“There is always a well-known solution to every human problem–neat, plausible, and wrong.”
“H L Mencken”
Same Old Story….same old song
Jim Rogers’ interview
.wmv is the devil.
i think they are switching over to flash, tho
m3: Yeah, this was actually a flash video.
Regarding the topic, I think his mention of the social impact of this downturn is especially important. The implications of the current and coming levels of foreclosures and unemployment (e.g. the current jobless rate discussion) are intimidating to say the least.
Much of his analysis is correct. However, it is evident from this interview and the interview on Kudlow that he is very much of the “tax and spend” mindset. And who knows, maybe he’s angling for a job in the Obama administration.
Straight talk–its been so long. Where have you been?
I’m not sure exactly what a “tax and spend mindset” is these days since a surprising number of ‘liberals’ seem to be more fiscally conservative than their more culturally conservative counterparts across the isle.
I am very certain what a “borrow and spend” mindset is however and don’t want to see any more of it for awhile even if it does mean higher taxes.
I’m wondering if the rice and tortilla riots we see happening elsewhere aren’t on the verge of happening here.
Policymakers better wake up. Bad things happen when people can’t afford to feed their families.
If they move fully to flash, I would like to see them make their videos embedable — like the WSJ or YouTube.
I’d use them more often — even if they contained a pre-roll . . .
Truly amazing the “something for nothing” crowd think the following sequence will do anything but wreck the economy:
1) Cut Taxes
2) Start a war (pre-emptive war by the way)
3) Increase domestic spending
4) Double the size of the national debt
And guess what happens, the economy goes in the tank. Who could have known……
I don’t think the left intends to spend less at the federal level than the compassionate conservative. Maybe differently, but not less. Probably a lot more. Whether the money to “pay for it” is borrowed or taxed doesn’t matter that much, does it? I keep hearing from self righteous sounding populist/lefties (some of whom post on your wonderful blog) who seem to think that the federal budget is just a bigger version of their own family budget, so there is some huge moral issue with balancing the budget that they find compelling. You don’t think that way, do you Barry?
Stiglitz is the man. Finally some honesty. I appreciated that the talking heads let him keep talking despite 1) his slight rambling and 2) the fact that they don’t understand jack of what he’s talking about…
A sign of the times (and the root of the problem):
The US has moved so far to the right that some think there are a lot of “lefties” posting here ! Hey no problem with massive deficits, boy. You’re not a lefty are you Barry.