Sept. 13 (Bloomberg) -- Joseph Stiglitz, the Nobel Prize- winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.
“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview today in Paris. “The problems are worse than they were in 2007 before the crisis.”
Stiglitz’s views echo those of former Federal Reserve Chairman Paul Volcker, who has advised President Barack Obama’s administration to curtail the size of banks, and Bank of Israel Governor Stanley Fischer, who suggested last month that governments may want to discourage financial institutions from growing “excessively.”
A year after the demise of Lehman forced the Treasury Department to spend billions to shore up the financial system, Bank of America Corp.’s assets have grown and Citigroup Inc. remains intact. In the U.K., Lloyds Banking Group Plc, 43 percent owned by the government, has taken over the activities of HBOS Plc, and in France BNP Paribas SA now owns the Belgian and Luxembourg banking assets of insurer Fortis.
While Obama wants to name some banks as “systemically important” and subject them to stricter oversight, his plan wouldn’t force them to shrink or simplify their structure.
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“The question then is who is going to finance the U.S. government,” Stiglitz said.
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ReplyDeleteblah blah blah same ole sheet
ReplyDeletedollars forever: same old loser that visits this forum that hasn't a brain in his head. Keep them dollars you will need them for fire to keep warm.
ReplyDeletecan't burn or eat silver and gold, loser
ReplyDeleteall this talk about how the shiney stuff makeyou rich overnite haha what a joke is that
Bye, bye, Christmas.
ReplyDeletehttp://pencildicksvstheworld.blogspot.com/2009/09/say-goodbye-to-christmas.html
Good video on our debt, from a historical perspective:
ReplyDeletehttp://www.youtube.com/watch?v=Est3ifI7Now&annotation_id=annotation_162594&feature=iv
They should take his Nobel prize away for saying stupid things. Banks are doing very good and their size are perfect. Why should we have banks that can fail, depositors will be losers. Too big to fail banks are good for the economy.
ReplyDeleteStrange how this blog is attracting disinfo posters in the comments.
ReplyDeleteMore Acorn bullshit?
When banks are made too big to fail, the fail becomes the entire economy.
That's what the Rock's got cooking.
I've noticed the disinfo posts also. You know that truth is being exposed when it is opposed via ridiculous comments. It could be just a dumb kid for that matter though.
ReplyDeleteAmazing how when someone is saying the truth in their comment, they are branded disinfo. I think a lot of you here needs help really bad.....
ReplyDelete"Banks are doing very good and their size are (sic) perfect" - "Too big to fail is good for the economy" -> if that isn't brainless rambling, what is?
ReplyDeleteYou may just be mentally disabled or a kid, so there really isn't any point in debating such ludacris statements. Post what ever you want son, we'll just accept you as you are ...