Nobel Economist Stiglitz Not Keen On Treasury Plan
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.
