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Nobel Economist Stiglitz Not Keen On Treasury Plan

2009_03_stig.jpg Leave it to a Nobel prize-winning economist to rain on Wall Street's parade! Joseph Stiglitz, who teaches at Columbia now, told Reuters that the Treasury Department's plan—embraced by the markets yesterday—"is very badly flawed." Pointing out that taxpayers are being used by the government to guarantee the assets, while private investors are getting the upside, Stiglitz said, "Quite frankly, this amounts to robbery of the American people. I don't think it's going to work because I think there'll be a lot of anger about putting the losses so much on the shoulder of the American taxpayer." Right now, stock futures are down. Stiglitz was cited by the 2001 Nobel Prize committee for his contributions about understanding asymmetric information in the markets.

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  • themsthebreaks

    would be interested to read if he has any suggestions. hopefully he's not just shooting down ideas without presenting any of his own. Google, here I come...

  • blablanyc

    There are many things robbing the American people. I can put together a list if you want.

  • blablanyc

    Obama's economic dream team is implementing former Secretary of the Treasury Hank Paulson's bad idea with a twist. The Fed is making garbage palatable to investors by mega-leveraging the garbage. The downside is it will expose the garbage on banks balance sheets and ruin them. This makes Chapter 11 look like a so much better option.

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